Question
What is loan interest?
Interesting Question? 
(2) 
(6)
(2) (6)
Answers (1)
18th Nov 2009 by cocacolabuffet
A loan interest is the payment a debtor makes to a creditor in addition to the repayment of principal.
When a loan is made, the debtor is generally required to make a periodic payment to the creditor. Except for interest-only loans, the periodic payment includes two components: loan interest and payment towards the principal balance.
For example, suppose John takes out a 1-year loan with a principal of $1000 and he is charged an interest rate of 5%, the loan interest is $50.
[loan interest = principal balance X interest rate]
A loan interest is the payment a debtor makes to a creditor in addition to the repayment of principal.
When a loan is made, the debtor is generally required to make a periodic payment to the creditor. Except for interest-only loans, the periodic payment includes two components: loan interest and payment towards the principal balance.
For example, suppose John takes out a 1-year loan with a principal of $1000 and he is charged an interest rate of 5%, the loan interest is $50.
[loan interest = principal balance X interest rate]
Like This Answer? (0) (0)
This answer is the subjective opinion of the writer and not of FinancialAdvisory.com
(0) (0)
17th Nov 2009 In Finance
1 Answers | 56 Views
Subjects: loan interest,