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SomeInternetRando t1_j205pf8 wrote

>Basically, how do these numbers fit together?

6.94% APR means that every month, 0.58% (6.94% / 12 months) of her current balance gets added to how much she owes. Those numbers come from assuming she keeps that going while making only the minimum required payments.

>I don't have much experience with car loans

This is how nearly all debt works, from credit cards to mortgages.

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FunElephant7 OP t1_j207mch wrote

Thanks, this helps. I guess I should say I don’t have experience with loans in general, but I do remember learning about this in school a long time ago, so this was a good reminder of how it all works.

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