answer:If you didn’t pay a dime of the original $2000 for three years, then by the time you start paying it back, you’ll actually owe $2,436 (2000×1.068 to the third power). The interest applies to both the principal and any unpaid interest that has accrued over time. In fact, when you do start paying back your loan, make sure that your payments are large enough to actually begin paying down the principal itself. For example, if your loan owe $10,000 with a 7% interest rate. You need to be paying more than 58 dollars a month or else you will never pay the loan off at all (since the interest on $10,000 at 7% is 700 a year, if you only paid $50 a month, at the end of the year, you’d actually owe $10,200, a bigger debt than when you started). All reputable loan companies will make sure that your payments are large enough to pay down the debt, but the private ones will want you to take as long as possible to do so.