Finance maths -_- (1 Viewer)

[Deliriously]

Could somebody explain how paying off loans work (with an example as well)?

Much appreciated

 

[Deliriously]

Okay I think I understand it now, just one question,
When you are repaying your monthly installments to pay off a loan, is it like investing money (so do they get compound interest too)?

 

[Carrotsticks]

Okay I think I understand it now, just one question,
When you are repaying your monthly installments to pay off a loan, is it like investing money (so do they get compound interest too)?

I don't quite get your question.

 

[D94]

The bank charges an interest on your loan whilst you're paying it back. Basically, if there is an interest charged, you'll be paying the bank more than you borrowed, but you'll be paying that in small portions over a long time rather than at once.