[moonlite]

My daughter financed a $22k new car at 1% over six years. She figured her interest payment every month won't be very much. When she received her first bank statement she was surprised to find out that $56 go to interest alone every month and we're trying to make sense why the interest payment is so high at such a very low interest rate (about $270 go to principal) We are trying to see if this sounds right before we call the bank. Anyone good with numbers please respond. Thank you.

[Wondergirl]

The figures are correct.

How much interest does she expect to pay per month?

Here's a similar problem using 5% interest -- http://www.onemathematicalcat.org/Ma...ts.htm#payback

[Fr_Chuck]

When she got the loan, there should have been a page, that showed her the cost of the loan,

But it is easy, take the total you borrowed, in your case 22,000, then you take the total payments, @@@ dollars a month times the total number of months,

That figure minus the amount borrowed is the total interest that is to be paid.

Also interest is figured several ways, how is it applied

[ScottGem]

Have you ever heard the word amortization? The way ANY loan works is the interest is higher in the beginning and lowers as the loan in paid down. Interest is calculating on the outstanding principal balance which decreases as the loan is paid down.