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90
Argentina’s central bank hikes interest rate to 133% (www.reuters.com)
posted 1 year ago by ThinkItThrough 1 year ago by ThinkItThrough +90 / -0
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– BerlinWallCrosser 3 points 1 year ago +4 / -1

Translation: A $1000 loan over 12 months would cost you $855.67 in interest over the life of the loan. https://www.calculator.net/auto-loan-calculator.html

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▲ 3 ▼
– BilleeBeene 3 points 1 year ago +3 / -0

…aaaaand why isn’t that $1330. in interest?…

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▲ 4 ▼
– ProudOfAmerica 4 points 1 year ago +4 / -0

Because you pay down the principal starting the very first month, so you won't pay 133% on the full balance for the full year.

In the second month, the balance is even less, and so on...

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▲ 3 ▼
– BerlinWallCrosser 3 points 1 year ago +3 / -0

Interest on loans is compounded. You calculated simple interest which is not done in business. The attached link is the method used for calculating monthly payments, total interest, and total payments on any loan, whether it’s a car loan, mortgage, and any business loans.

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▲ 2 ▼
– weholdthesetruths 2 points 1 year ago +2 / -0

You forgot the link.

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– BerlinWallCrosser 3 points 1 year ago +3 / -0

It’s right below my comment.

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