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Loan Voyage

Level 1 of 10 · Read a loan schedule: interest charged, principal repaid and closing balance.

One month at sea

Borrow $1,000 at 12% a year. One monthly payment of $200. Borrowed $1,000 · 12% a year · payment $200 per month.

Month 1 of 1

Opening balance
$1,000
Rate this period
1%
Payment
$200
Closing balance
—
Interest for a period = opening balance × (annual rate ÷ periods a year), rounded to the cent. Principal repaid = payment − interest. Rates are fixed and hypothetical; no fees or tax are modelled.