I purchased a car, borrowing money from a bank for the auto loan. Long story short, I asked the bank for a detailed history of my payments, and they sent me a document that shows every payment I've made, how much was allocated to interest, and how much was allocated towards principal.
When I do the math, the sum of money allocated to interest and not principal, is a little over $9,000. The contract states that the loan will cost me $6773.50 in interest. Yet, I can see they reached that amount over a year ago, and have continued to allocate 40% or so to interest on every payment since.
I still owe $1700, my question is why 100% of my payments are not going to principal since they have already taken the contracted amount of interest?