The Basics of Interest Rate Math

If you're paying 9% in six months, so you have the entire $100,000 for six months and then you owe $9,000 at that six month rate, that would be an 18% APR. That is like borrowing money at 40% that is twice as bad as putting it on your credit card. The true cost of capital of this loan is not 9%. It is 44%. Is the effective interest rate that you have paid $100,00 for six months? Oh, it's just a 9% fee and you pay one six back every month. And gradient all the way up to 108%. There's a spreadsheet calculator where you can do this, build the A

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