sdada

cpk123 Wrote:
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> small correction to this:
> On this principal, you accrue 8% interest in the
> whole 2006 year and you pay it on 1st Jan 2007 as
> part of the next $10,000 payment.
>
> On this principal, you accrue 8% interest in the
> whole 2006 year and you pay it on 1st Jan 2007 IN
> ADDITION TO THE NEXT $10,000 payment.

I am not sure about this. On Jan 1 2007, you pay $10,000 which includes interest accrued in 2006 and a part of the principal. You don't pay anything additionally, I think.
Am I missing something here?