SoppingBread t1_j6kqven wrote
Reply to comment by avalpert in (US) My car loan interest rate is 5.5%, but 15% of my monthly payments go towards interest. Why? by SupplyChainOne
"Since money towards principal reduces the balance, the interest payments are front loaded (more money towards interest early in the loan and less at the end). Amoritization calculaters visualize this effect."
Firat sentence was an incomplete thought; APY is calculated for the term of the loan an figured into a normalized payment amount. Else you said the same thing.
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