## How can I calculate the amount of interest on my own?To determine the amount of interest you will be required to pay on each month, use the following formula called the Simple Daily Interest formula: Simple Daily Interest FormulaNumber of days since last payment x Principal Balance Outstanding x Interest Rate Factor = Interest Amount
32 (days) x $9500.00 (PBO) x .00022587 (interest rate factor)
You would pay $68.66 toward interest and $91.34 toward the principal balance. This would leave you with a loan balance of $9408.66 after the $160.00 payment was applied. |