VillageIdiot Posted September 12, 2011 Share Posted September 12, 2011 Hi I borrowed £200 off my boss. He charged me £40 And i have to pay it back at £120 A WEEK Anyone work out a APR please... VI Link to comment Share on other sites More sharing options...
Stamen Posted September 12, 2011 Share Posted September 12, 2011 Hi I borrowed £200 off my boss. He charged me £40 And i have to pay it back at £120 A WEEK Anyone work out a APR please... VI Watch out....spelling police about!:hihi: Link to comment Share on other sites More sharing options...
Stvoider Posted September 12, 2011 Share Posted September 12, 2011 I'm gonna shoot with 800% I'm no mathematician Link to comment Share on other sites More sharing options...
Moosey Posted September 12, 2011 Share Posted September 12, 2011 Hi I borrowed £200 off my boss. He charged me £40 And i have to pay it back at £120 A WEEK Anyone work out a APR please... VI 0.76% I think? You'll pay £40 extra, over the two weeks it takes to pay it off, meaning that it's 20% over the year, assuming you make both payments, so divide that by 26.....It's actually 20% more, but APR is annual, whereas you'll pay this debt off in two weeks. You'll pay 20% on the debt, but you'll pay it off in two weeks, so in one year, you'll make two payments only, paying 20% interest. Not really comparable to the TV ads as we don't know what he'd do if you didn't pay up - would he add interest etc. EDIT. The other way to look at it is that it's 20% over two weeks, therefore if the debt was over a longer period, it'd be 26 x 20%, therefore 520%. After much whittering, it's difficult to say as APR is annual, and there's no way this debt could be. Link to comment Share on other sites More sharing options...
andygardener Posted September 12, 2011 Share Posted September 12, 2011 791.6% ...ish Link to comment Share on other sites More sharing options...
Stvoider Posted September 12, 2011 Share Posted September 12, 2011 I thought the A stood for annual..... Vastly more then 0.76% then no? Link to comment Share on other sites More sharing options...
Alcoblog Posted September 12, 2011 Share Posted September 12, 2011 Hi I borrowed £200 off my boss. He charged me £40 And i have to pay it back at £120 A WEEK Anyone work out a APR please... VI Er ... hang on ... just a sec ... tra la la ... erm ... times by three, subtract nine ... cosine 3.6729 ... dum de dum ... press 'enter' ... erm, here we go: 317.274(on a sliding matrix, of course) Link to comment Share on other sites More sharing options...
HeadingNorth Posted September 12, 2011 Share Posted September 12, 2011 He's effectively charging you £20 a week for the loan, which is £1,040 over a year. £1,040 interest on a loan of £200 is just over 500% APR. And that's assuming that he hasn't used a compound interest rate. I'm not enough of a mathematical genius to figure out what the APR would be if you assume compound interest. Link to comment Share on other sites More sharing options...
Moosey Posted September 12, 2011 Share Posted September 12, 2011 I thought the A stood for annual..... Vastly more then 0.76% then no? Yeah, I've edited it It's difficult as there's no way this could be annual. Link to comment Share on other sites More sharing options...
Stamen Posted September 12, 2011 Share Posted September 12, 2011 Er ... hang on ... just a sec ... tra la la ... erm ... times by three, subtract nine ... cosine 3.6729 ... dum de dum ... press 'enter' ... erm, here we go: 317.274(on a sliding matrix, of course) It actually calculates at %3.58712 on the new tory fiddle the numbers even more scale. Link to comment Share on other sites More sharing options...
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