Topic Sentecs - When calculating your interest remember to...

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When making large purchases that involve a line of credit there are many contributing factors that persuade our decision. When making a purchase as a consumer it is important to calculate your proposed interest rates in with the total amount of your purchase. The interest rate can raise your total cost and possibly make the purchase out of your budget. A higher interest rate could influence you against the purchase. Calculating your interest rate against the cost or the purchase is valuable to you as a consumer.
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Unformatted text preview: When calculating your interest remember to deduct the principal as this will give you a figure for how much you paid just to borrow money. When borrowing $25,000 with an interest rate of 7%, and making 60 payments over a span of 5 years you will pay a total of $4701.80 in interest. It is important to consider if with the current interest rate your getting if it is worth your purchase....
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This note was uploaded on 05/27/2011 for the course COM/155 COM/155 taught by Professor Michellehoneycutt during the Fall '10 term at University of Phoenix.

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