How is the amount of interest paid calculated

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Law

Darrell Young

17 October, 14:17

How is the amount of interest paid calculated

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Kennedi Mcneil · Answer 1

Answer:which for the first payment, will be your whole principal amount.

Explanation:Divide your interest rate by the number of payments you'll make in the year (interest rates are expressed annually). So, for example, if you're making monthly payments, divide by 12. 2. Multiply it by the balance of your loan, which for the first payment, will be your whole principal amount.