I took out a loan total of $36,458.45. Interest rate of 8.44%. My total loan is 5 years. My monthly payment is $749.56. I paid 3x that amount for my first month (so $2,248.68). They applied the entirety of what I paid beyond the $749.56 directly to principle as agreed (so $1,499.12). So far so good. However- of the $749.56 minimum I was required to pay, they applied $354.07 to interest, and the rest to principal. Where are they coming up with $354.07 if my APR is 8.44%??
By my math, the interest paid for the first month shouldve been calculated as $(36,458.45*.0844)/12=256.42, which is almost $100 less than what they charged me.
Did I make a mistake in my understanding of the APR or did the bank make a mistake?
Submitted February 12, 2023 at 11:06PM by Gbpxl https://ift.tt/DGoO06e
