Some Sunday maths

slimbettie

I hope you can help me....
If I take out a loan of $300 000, at 12% interest per year, and pay back terms are 10 years, then what is my monthly premium? Online calculators says $4300, but the person who drew up the contract says it is $8000 per month.
Thanks!

Anahita_Swims

is the interest compound or not?

slimbettie

it is a fixed interest.

Anahita_Swims

I make it $7764 with some basic maths .... I could how is the interest calculated per year or monthly?

Anahita_Swims

with a fixed agreed interest of 12% on the initial amount per year your get monthly payments of about 5500

Anahita_Swims

you 4300 figure works if the interest is recalculated and added every month at and 12% equivalent apr

slimbettie

Thanks so much!!!

tuckerrj

Question is, "Why in the *&%$#@!" are you paying 12% interest in an environment when everyone else is paying 4 - 5% ???

La_Malfaisante