What is the cost of a $10,000 loan?
What is the cost per month of a $10,000 loan? This is a good question, and this is based on an interest rate calculation…
If you’re $10,000 loan has a 10% annual interest rate, and you have a one-year term then you’ll owe $11,000 in total because 10% of that will be interest which is $1,000.
If you take that $1,000 interest cost and divide it by 12 to showcase a monthly payment, then you’re looking at $83.33 per month.