Correct way to book a [auto] loan

[Linas Vepstas]

On Tue, Jan 08, 2002 at 02:41:04PM -0800, Dave Peticolas was heard to remark:
> though I'm not sure the exact way to figure interest vs
> principal in payments (my car loan statement breaks it
> down in a way that seems random to me :)

When you make a payment, you pay off 100% of the interest accumulated
since the last payment.  If there's anything left over, it reduces
the principal.  Because of this, the ratio of pinc/int changes over time.

--linas



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pub  1024D/01045933 2001-02-01 Linas Vepstas (Labas!) <linas@linas.org>
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