Originally Posted by MediaCenterJunkie
Flopnuts help me out here.
Lets say you get a loan for $3400
You put $500 down in a down payment, and have 10% compound interest.
You pay $400 a month back on the loan.
What does that 10% compound interest mean?
The only difference between that and a normal interest loan is, you pay interest on your interest with a compounded interest loan.