In the modern world, it is simply impossible to imagine life without loans. People constantly encounter them: they take cash to repair an apartment, to buy a house, for various goods, clothes and shoes. Moreover, not all of them will be able to calculate the full cost of the loan.
Instructions
Step 1
Take a document that contains all the data on your loan, a sheet of blank paper and a pen for making calculations. Then write on a piece of paper the amount you borrowed or the value of the item you borrowed.
Step 2
Look in the document on the loan: what interest rate is charged to you on the borrowed funds. Rewrite this figure on a piece of paper, below the cost of the loan.
Step 3
Calculate for how long you took out a loan. The value should be equal to a certain number of days. As a rule, the term of the loan is indicated in the document that is issued when taking any amount of debt.
Step 4
Look in the terms of the loan agreement, how you are charged interest. In turn, interest can be charged on the balance of the debt, or in the form of a single percentage value calculated on the entire loan amount for the entire period of its payment.
Step 5
Calculate the total cost of the loan. To do this, if interest is not charged on the balance of the debt, multiply the loan amount by 100 percent and divide by the interest accrued for the use of funds for the year. Next, add to the received value the commission that you paid for the loan (if any).
Step 6
Calculate the total cost of the loan if interest is charged on the remaining amount owed. To do this, look from the loan document how much you must pay for the first month. Multiply this value by 100 and divide by the annual percentage, previously divided by 12 (the number of months). Then subtract the resulting value from the principal. After that, count how many payments are prescribed in the agreement, that is, for how long you take out a loan (for example, if you have taken out a loan for 1 year, then there are 12 obligatory payments). Next, make a calculation for the second month of the loan for the remaining amount of the loan. When you have calculated the full amount of all payments for the required period, add them all.
