Can someone please explain this Amazon Lending of 6k at 6 month payments?
Interest (15.90% annual rate) $281.34
Net Loan Proceeds $6,000
Total of Payments $6,281.34
Monthly Payment $1,046.89
Total Cost (4.69%) $281.34
So why is it a 15.9% annual rate but a total cost of 4.69% at $281.34?
Is $281.34 the final fee in total for this? Any advice is much appreciated.
Also, does this have any negative effect on my account?
A loan from Amazon lending will not have any effect on your account unless you do not pay as promised.
The 15.9% is an annual percentage. (the amount that you would be charged if no principal amount were payed for a period of 1 year)
You are paying off the total loan in 6 months and as you make the monthly payment each month there is a smaller principal balance that is charged the annual percentage.
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