ðə lˈæɾɚɹ ɐmˈaʊnt, ðɪ ˈɪntɹɛst kəmpˈoʊnənt ʌvðə kˈɜːɹənt pˈeɪmənt, ɪz ðɪ ˈɪntɹɛst ɹˈeɪt ˈɑːɹ tˈaɪmz ðɪ ɐmˈaʊnt ʌnpˈeɪd æt ðɪ ˈɛnd ʌv mˈʌnθ ˈɛn wˈʌn.
The latter amount, the interest component of the current payment, is the interest rate r times the amount unpaid at the end of month N–1.