james
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Post by james on Feb 20, 2016 23:34:26 GMT
Does the interest remain 10% APR paid monthly on the entire loan amount even as the capital is paid back or does the interest payment drop as the capital is repaid? I,e if I invest 12000 do I get 100pounds per month interest until the loan is repaid? Like a mortgage with a reducing amount borrowed and increasing percentage of capital in each monthly payment. Your account statement will show two entries, one for the capital payment and one for the interest payment. So you get 10% in monthly pieces based on the amount you have invested but that amount invested is gradually reducing with each payment, so you don't get 10% on the whole £12000 except for the first month, after that it's on a bit less than the original £12000. The display of the amount you have invested in an amortising loan currently doesn't reduce when the payments are made. I track that myself.
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