How to calculate interest

How to calculate interest

mstrhappygolucky@hotmail.com (mstrhappygolucky)	3/10/2004 2:48:45 PM
I settled a personal injury out of court. The attorney said I owed $1200 for a year plus interest of 10%. I've been paying $100 a month and this is the 12th month of making payments. How can I determine what interest I owe. Is it $120. One calculator on the internet said it was like $70 but I'm not sure. If I screw up a payment, the judgement goes from the $1200 to $3600 so I want to get it right. My attorney left the firm and no one else there is returning my call.



"David Martel"	3/11/2004 3:52:08 AM
Lucky, Get a calculator, a pen, and a piece of paper. I'll take you through the first few months. It should take around 14 months to pay off your debt. I'm assuming that your interest is 10% annually and is compounded monthly. I'm rounding off to the nearest penny Make three columns. Label them debt, principle, and interest. Put $1200 in the debt column. This is what you owe in the first month. Multiply this by 0.1 and divide by 12. You should get $10. This is the interest due in the first month. Put this in the interest column. Subtract the interest from $100. You should get $90 dollars. Put this in the principle column. This is the amount of your monthly payment that is used to pay off your debt. Note that in each month part of your payment goes towards paying interest and part goes towards paying the debt. All right, let's move to month 2. Subtract the principle ($90) from the debt ($1200). Put this amount ($1110) in the debt column. Now let's calculate the interest owed. Multiply $1110 by 0.1 and divide by 12. You should get $9.25. Put this in the interest column. This is the amount of interest you pay this month. Subtract the interest from $100. You should get $90.75. Put this in the principle column. Month 3. Subtract the principle ($90.75) from the debt ($1110). You should get $1019.25. Put this in the debt column. Multiply by 0.1 and divide by 12. You should get $8.49. Put this in the interest column. Subtract this from $100. You should get $91.51. Put this in the principle column. Continue calculating for each month until the debt is less than $100. For this last month calculate the interest in the usual way. Add the interest to the debt. This sum is the last payment. Send a check for this amount and send a copy of your calculated payment chart to show why you believe that the debt is completely paid off. Good luck, Dave M.



"Richard"	3/10/2004 11:03:02 PM
mstrhappygolucky wrote: I settled a personal injury out of court. The attorney said I owed $1200 for a year plus interest of 10%. I've been paying $100 a month and this is the 12th month of making payments. How can I determine what interest I owe. Is it $120. One calculator on the internet said it was like $70 but I'm not sure. If I screw up a payment, the judgement goes from the $1200 to $3600 so I want to get it right. My attorney left the firm and no one else there is returning my call. Your payments should have been $105.50 a month. http://mortgages.interest.com/content/calculators/simple.asp Or a total of $1,266



mstrhappygolucky@hotmail.com (mstrhappygolucky)	3/14/2004 9:16:21 PM
Thanks Dave!!! :-) "David Martel" <marte005@earthlink.net> wrote in message news:<InR3c.14211$%06.4195@newsread2.news.pas.earthlink.net>... Lucky, Get a calculator, a pen, and a piece of paper. I'll take you through the first few months. It should take around 14 months to pay off your debt. I'm assuming that your interest is 10% annually and is compounded monthly. I'm rounding off to the nearest penny Make three columns. Label them debt, principle, and interest. Put $1200 in the debt column. This is what you owe in the first month. Multiply this by 0.1 and divide by 12. You should get $10. This is the interest due in the first month. Put this in the interest column. Subtract the interest from $100. You should get $90 dollars. Put this in the principle column. This is the amount of your monthly payment that is used to pay off your debt. Note that in each month part of your payment goes towards paying interest and part goes towards paying the debt. All right, let's move to month 2. Subtract the principle ($90) from the debt ($1200). Put this amount ($1110) in the debt column. Now let's calculate the interest owed. Multiply $1110 by 0.1 and divide by 12. You should get $9.25. Put this in the interest column. This is the amount of interest you pay this month. Subtract the interest from $100. You should get $90.75. Put this in the principle column. Month 3. Subtract the principle ($90.75) from the debt ($1110). You should get $1019.25. Put this in the debt column. Multiply by 0.1 and divide by 12. You should get $8.49. Put this in the interest column. Subtract this from $100. You should get $91.51. Put this in the principle column. Continue calculating for each month until the debt is less than $100. For this last month calculate the interest in the usual way. Add the interest to the debt. This sum is the last payment. Send a check for this amount and send a copy of your calculated payment chart to show why you believe that the debt is completely paid off. Good luck, Dave M.

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