<prompt> Human: My coworker we will call him Bagel received a loan for 1,100, his first payment was not due until the end of this month. Bagel paid off the loan last month but received a phone call today from the lender telling him that he owes 140 in interest on the loan. The lender then went on to tell Bagel that if he didnt make the payment by tomorrow the amount owed would increase. When Bagel asked how much the amount would increase the lender said it would increase based on the interest rate of the total amount of the original 1,100 and not on the 140 already somehow owed. My questions are:1 Can the lender collect interest from Bagel even though he paid off the loan in full before the first payment date?2 If they somehow are able to collect the 140 of interest, if he doesnt pay it by tomorrow, can they collect interest on the original 1,100 or is it supposed to be off of the remaining balance of 140?I know if I spent 1,100 on my credit card and paid off 800 I would owe interest on the remaking 300 not the original 1,100. This was a new situation to me and I didnt know what to tell Bagel so I turn to you reddit. Please and thank you.Edit: Late response but his interest was like a 23. He spoke on the phone with 3 different people all of which tried to add up the interest and did not come up with the 140 and could not figure where that number came from. They said they would try to get ahold of a supervisor and contact him when they figured out what the actual number is. Thanks for the responses  <response>: Sounds like Bagel didnt call to get a payoff amount. Interest had been accrued during the month before Bagel paid, and posted after Bagel had already paid off. So yes, Bagel needs to pay off the loan. 