50.2k views
5 votes
Why does it take 30 years to pay off 150000 dollar loan even though you pay 1000 a month?

User Ender
by
3.7k points

1 Answer

2 votes

Answer:

Why does it take 30 years to pay off $150,000 loan, even though you pay $1000 a month? ... Even though the principal would be paid off in just over 10 years, it costs the bank a lot of money fund the loan. The rest of the loan is paid out in interest.

User Ravi Ranjan
by
4.2k points