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From my spreadsheet. 177% APR is 55 wks at £9.
If you do not know the APR but are given the payment amount, number of payments etc ... I reckon using a calculator will require iteration, from a best guess at the n'thly interest rate.
Normally we are given the APR, term of loan and repayment periods.
The APR would be fully applied if no repayments were made for a year ie at 177% APR, pay back nowt and owe £531 after one year... This is the unsavoury part of the deal keeping accounts - how could the normal person with little mathematical interest ever keep abreast of varying or missed repayments and the consequences? ... Lambs to the slaughter.
A real sharp toothed watchdog with draconian powers might be a good idea....
Loans from 1st principles... by Pip
If you do not know the APR but are given the payment amount, number of payments etc ... I reckon using a calculator will require iteration, from a best guess at the n'thly interest rate.
Normally we are given the APR, term of loan and repayment periods.
The APR would be fully applied if no repayments were made for a year ie at 177% APR, pay back nowt and owe £531 after one year... This is the unsavoury part of the deal keeping accounts - how could the normal person with little mathematical interest ever keep abreast of varying or missed repayments and the consequences? ... Lambs to the slaughter.
A real sharp toothed watchdog with draconian powers might be a good idea....
Loans from 1st principles... by Pip
