Any maths whizzes out there?? Got a dull loan repayment question!

[SnafuOutOfHiding]

I'd be eternally grateful if someone could help me with this. It's probably really easy but I am a maths dunce...

I've got £3081 outstanding on a loan which I would really like to pay off asap. The interest rate is 8.92% APR. The bank have told me that if I want to pay it off in full they will charge me 2 month's worth of interest on top.

Can anyone work out for me how much I would be paying altogether?

3081 x 8.92% / 6 (to give 2 months) = 45.80 interest. So 3126.80.

I get the same as NQC.

shouldn't it be compound interest? 1 months interest is not the same as 1/12 of the yearly figure. But it depends on how the bank work it out: didn't they give you a monthly equivalent?

Thank you, thankyou. I hate percentages

No, they didn't, SP. That's why I was getting a bit confused - I don't understand compound interest and APRs etc really. But if 3126 is a ballpark-y figure that's fine...I just wanted make sure it wasn't going to add hundreds to the final figure.

the real figure will be lower, snafu. or it should be.

Excellent! Thanks SP.

I really am going to get my finances in order this year. Streamlined and thrifty, that's me in 2007...

this is a useful calculator