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

8 replies

SnafuOutOfHiding · 27/12/2006 17:03

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?

OP posts:

NotQuiteCockney · 27/12/2006 17:07

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

DeckthehallsLaDiDaDi · 27/12/2006 17:10

I get the same as NQC.

SenoraPartridge · 27/12/2006 17:16

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?

Original poster

SnafuOutOfHiding · 27/12/2006 17:19

Thank you, thankyou. I hate percentages

OP posts:

Original poster

SnafuOutOfHiding · 27/12/2006 17:22

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.

OP posts:

SenoraPartridge · 27/12/2006 17:44

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

Original poster

SnafuOutOfHiding · 27/12/2006 18:03

Excellent! Thanks SP.

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

OP posts:

Gingerbear · 27/12/2006 18:09

this is a useful calculator

Flip