Monthly Interest Payments, if the interest rate is 18% per year

KWF

Junior Member
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Feb 19, 2010
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If the interest rate is 18% per year, is it possible for the total of the interest payments to be less than $90, or $500 X 0.18?

If yes, why.
 
If the interest rate is 18% per year, is it possible for the total of the interest payments to be less than $90, or $500 X 0.18?
If yes, why.
I always wonder how you get your problems KWF!

500.00 * .18 = 90.00
499.99 * .18 = 89.9982

So borrow 500 and pay 1 cent when you pick up the loan.......:confused:
 
I always wonder how you get your problems KWF!

500.00 * .18 = 90.00
499.99 * .18 = 89.9982

So borrow 500 and pay 1 cent when you pick up the loan.......:confused:

If I understand correctly, just make a down payment, and the total interest payments will be less than $90.00 on a $500.00 loan at 18%. I am assuming that the 18% would then be applied to the new amount (loan) after the down payment is made. (?)
 
Last edited:
yes...whatever...
WHY did you ask such a question to start with?
 
If the interest rate is 18% per year, is it possible for the total of the interest payments to be less than $90, or $500 X 0.18?

If yes, why.
Sure the total interest can be less than $90. Simply borrow $30. Whether the yearly interest is compounded once per year, twice per year, ... monthly, .... daily, ...hourly or even continuously the interest for SAY 1 year will be less than $90.

Your problem is clearly incomplete as you never said how long the loan is for, how often interest is compounded ....
 
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