Sunday, 20 July 2014

If you owe 6000 on a car and u pay 6000 in under a year will you avoid the apr?

If you owe 6000 on a car and u pay 6000 in under a year will you avoid the apr?
No, your interest rate usually starts from the date you sign the loan agreement and drive the car off the lot. Each month your payment consists of two parts: the principal and the amount of interest accrued for that month.

For example: your loan amount is 6,000.00
Interest rate is 6%
Amortized for 1 year
Your 1st installment is 507.53 (Principal 493.68 Interest 13.85)

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