Anyone good with APR's?

[conny]

My son wants to buy a telly costing £399 with an APR of 19.9%

He wants to pay it off over 6 months. How much would he have to pay each month to achieve this and what would the total cost be?

Thanks in advance.

 

[libby lou lou]

73.33 a month, comes to 440, altogether. edit= at 20%.

 

[DIYDANDY]

6 x 70.99
Total £420.55
Total Int £21.55

 

[conny]

Thanks LLL and Dandy,
I like Dandys figures better but may tell him LLL's figures.

 

[RedHerring2]

I worked interest at: Balance X (.2/12)[code:1]
Month Balance Interest New Total Payment
1 £400.00 £6.67 £406.67 £70.61
2 £336.06 £5.60 £341.66 £70.61
3 £271.05 £4.52 £275.57 £70.61
4 £204.96 £3.42 £208.37 £70.61
5 £137.76 £2.30 £140.06 £70.61
6 £69.45 £1.16 £70.60 £70.60
£0.00 £0.00 £0.00

£23.65 £423.65



[/code:1]

 

[namsag]

Be easier for everyone if he bought it on 6 months interest free

 

[empip]

£70.09 per month.
Total cost £420.55
Interest payable £21.55 or 5.4% of price.

12th root of 1 plus APR as decimal = monthly rate as decimal plus 1.

only ever mathematically correct as geometric progession - I fink.

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[PrenticeBoyofDerry]

Be easier for everyone if he bought it on 6 months interest free

Be easier if you bought it, and told us how much it cost in 6 months time!
Does this help?
http://www.mercerhole.co.uk/calc/loan/index.php

Loan Amount (£) 399

APR (%) 19.9

Number of Monthly Repayments: 6

Monthly Loan Repayment (£): £70.09

Total amount to repay (£): £420.55

Total Interest charged (£): £21.55

 

[Blasphemous]

Great link thank you Prentice.

 

[PrenticeBoyofDerry]

Great link thank you Prentice.

No worries Blas, how's tricks?

 

[Blasphemous]

Thanks for asking mate.
Hopefully turning a corner... I hope there's nowt bad round the corner!

 

[PrenticeBoyofDerry]

Take it wide or go straight forward

 

[mointainwalker]

You can't tell without reading the contract.

I believe the APR calculation has to include any one=off charges ( set-up etc, credit-checking) and if they were applied over 6 months ( if the company will allow that and it's far from certain) then it's likely that the pro-rata APR over only 6 months might be 30% ( just as an example)

 

[conny]

Thanks to all of you.

Mointainwalker, its my contract, (i.e. I'm paying up front but he has to pay me back, ).
The thing is, he needs to realise that if he went to the shop himself he would have to pay interest but with his credit history they wouldn't touch him.

PBoD hit it on the head with this statement;

Be easier if you bought it, and told us how much it cost (you) in 6 months time!

Great link by the way PBoD, its now in bookmarks for future reference. Thank you.
Namsag, he thought he'd get 'interest free credit' off me!
Empip, that must be one of the few posts you have done without a link! Thank you also.
Red, thank you for your trouble also, though as you are a bit dearer than everyone else I won't come to you for a loan!
Once again thanks everyone. Much appreciated.

 

[empip]

Hmm... MotleyFool concurs with £70.09
http://www.fool.co.uk/loans/loan-calculator.aspx
Here is how.
//www.diynot.com/forums/viewtopic.php?p=90867#90867

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