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Old 12-01-2012, 08:56 PM
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bayoucity bayoucity is offline
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Join Date: Jun 2010
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Quote:
Originally Posted by MonkeyCMonkeyDo View Post
Sorry I was basing that number on traditional loans of 7 %. The number is equivalent to the loan amount. So a 4% loan is around 40% and a 1% loan would be 10% etc. the point wasn't a broad across the board type of statement. We are currently in an insanely low interest period that won't last. It used to be getting 4% from a credit union for a car was a great deal when 7% was standard.

Sorry I wasn't clear before. Typing on iPhone makes a lot of problems.
That's untrue. As a case in point, below are 60 months loan @ 7% :

Number of Payments 60
Monthly Payment $990.06
Total Principal Paid $50,000.00
Total Interest Paid $9,403.60
Total Paid $59,403.60

The only way for someone to get hit with 70% total interest (60 months) is via sub-prime lending @ 23.25% APR.