on 02-11-2016 06:04 PM
In next month im preparing to take a personal loan about 5000 $ for my grandmother in Poland that needs surgery.
So if i want to choose unsecured personal loan (loan term for 3 years) and face 11.99 % (P.A) per year of 5000 $ it's 599.5 x 3 becouse loan is for 3 years so it's 1798.50 $ total interest payable so overall 6798.50 $
Not total interest payable 978 $ over 3 years overall 5978 $ like calculator shows.
Can someone explain me why is huge difference ? I'm counting 3 times 11.99 % of 5000 $
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on 02-11-2016 06:42 PM
I want to add its same with flexible personal loan term 1 year
14.49 % of 5000 $ it's 724.50 $ total interest payable not 401 $ like calculator shows
on 03-11-2016 09:57 AM
Hi @eleq92, the interest amount payable will actually decrease each month as payments are made, so you will only pay interest on the remaining balance of the loan each month which is why the amount shown on our calculators would be less than the amount you have calculated on the total amount.
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