Learn how simple interest works, compare loan offers using APR, and discover why the Truth in Lending Act matters.
3 Modules:
🔵 Simple Interest — compute I = P × R × T
🟡 APR & Loan Comparison — pick the better offer
🟣 TILA Basics — know your rights as a borrower
📖 Quick Reference
Simple Interest Formula
I = P × R × T P = Principal · R = Rate (decimal) · T = Time (yrs) Convert: 7% → 0.07 · Total repaid = P + I
What is APR?
APR (Annual Percentage Rate) is the true yearly cost of borrowing — interest and fees combined. Always compare loans by APR, not just rate.
Why Term & Fees Matter
Longer terms → lower monthly payments but more total interest. Fees inflate true cost — a low rate with high fees can beat a higher-rate loan with no fees.
4 Steps to Compare Loans
1. Get multiple quotes · 2. Compare APR (not just rate) · 3. Calculate total cost · 4. Check your credit score first