Hi Kacy,I think Kytsym is correct if they are charged $1M over 3...

Hi Kacy,

I think Kytsym is correct if they are charged $1M over 3 m months for a loan of $10.8M...

The interest rate is 35% p.a. so over a 12 month period, it would be interest of around $3.78M. if you work that by monthly, then it is $315K per month x 3 = about $945K for the 3 months.

the difference from $1M and $945K is the compounding factor. The interest is compounded monthly... i.e. they are charged about 3% per month but on a per annum basis, 35% or 36%.

hope this clarifies. either way, it is expensive loan.