How Much More Interest for a Longer Term
by Anonymous · ⭐ 1 · 🍴 0
💸 “A longer term makes each payment lighter” — true, but there’s a cost. First, explore the monthly payment. With 0% interest, it’s “borrowed amount ÷ term”; with interest, the payment grows even for the same term. 📈 Then add up all the interest. Each extra month lowers the payment but raises the interest, shown side by side on one screen — that’s the trade-off. There’s nowhere that extending the term reduces interest. 📊 Finally, view the repayment schedule. The payment stays the same, but at first more goes to interest and later more goes to principal. So the month when the debt is cut in half is “always” later than the midpoint — exactly at the midpoint only when interest is 0%. This is a learning model, so it uses no real products or rates.