So when the monthly interest rate is 17.99%, and i spent $1,000 the total of that comes to $14.99 and my monthly payment is $15. I'm only paying off $.01 of the $1,000 dollars I spent.
+118723 That would not be the monthly rate. That would be the yearly rate.
The monthly rate would be that divided by 12.
Interest=1000×0.1799/12
14.9916666666666667
So yes if you pay $15 then the loan will be reduced by only 1 cent.
That is why many people get into financial difficulties with credit cards!
I don't quite understand what you are trying to do!!!. First, you are NOT spending $1,000. It looks like the $1,000 is a loan, on which the interest rate charged is 17.99% compounded monthly. I don't know who determined your monthly payment to be $15?. It is true that your first monthly payment will consist of $14.99 in interest and 1 cent in principal. But, at the end of 1 year, or the 12th payment, your principal will be $999.88, and at the end 10 years, your principal will be down to $997.43. At the end of 20 years, your principal will be down to $981.89. At the end of 30 years, your principal will be down to $889.35. At the end of 40 years, your loan will be down to $337.55. And this last amount $337.55 will be paid off in full in 2 more years. This all means that the loan will be paid off completely in 42 years. Or, in 42 years you will have paid off a loan of $1,000 and total interest of $ 630.00. However, the loan still cost you 17.99% over 42 years that it took you to pay it off.
