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Thread: Amazon Lending % Question
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Permlink Replies: 2 - Pages: 1 - Last Post: 12 Jun, 2017 6:22 AM by: GoodSeller
Deebeck

Posts: 62
Registered: 24 Oct, 15 7:44 AM
Posted on: 12 Jun, 2017 5:03 AM  
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Hello,

Can someone please explain this Amazon Lending of 6k at 6 month payments?

Loan Summary

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?

Thanks!
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cliff

Posts: 961
Registered: 25 May, 12 10:37 PM
Posted on: 12 Jun, 2017 5:26 AM   in response to: Deebeck in response to: Deebeck  
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Im not sure how they work the numbers but I am near the end of paying back a amazon loan and it worked very well for me
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GoodSeller

Posts: 7,612
Registered: 10 Mar, 12 10:53 PM
Posted on: 12 Jun, 2017 6:21 AM   in response to: Deebeck in response to: Deebeck  
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Deebeck wrote:
Hello,

Can someone please explain this Amazon Lending of 6k at 6 month payments?

Loan Summary

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.
Thanks!

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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