On Wed, 19 Sep 2007 07:53:45 -0700, lawdoggy wrote:

I need help with the formula for figuring out what the 'real' interest
rate is when you pay a loan off early. Example car loan:

$10,000 (borrowed) 5% @ 60 months, Total with interest is: 11,322.74

Now:
I do the same as above but apply an extra $500 to the principle each
month and pay off the loan in 16 months and only pay $336.75 in
interest. What is my new 'real' interest rate for this loan?

Thanks in advance for anyone who can help! mitch

Don't know where the 500.00 extra per month came from, but to pay back a loan
of 10000 at 5% in 16 months requires a monthly payment of 647.37. That is
458.66 per month extra.

Chuck