Stamen Posted September 12, 2011 Share Posted September 12, 2011 I thought the A stood for annual..... Vastly more then 0.76% then no? It stands for apple too! Link to comment Share on other sites More sharing options...
Sarkysod Posted September 12, 2011 Share Posted September 12, 2011 Wonga.com are £6.22 cheaper! Your boss must love you. Link to comment Share on other sites More sharing options...
Chris_Sleeps Posted September 12, 2011 Share Posted September 12, 2011 On the basis that you only pay the £40 and no more interest is added on, then the APR is 20%. It is added on upfront and not as a weekly/monthly percentage. It's a little harder to work it out otherwise because we don't know what he'd charge you if you failed to pay. Link to comment Share on other sites More sharing options...
Lockjaw Posted September 12, 2011 Share Posted September 12, 2011 I make it around 335% apr. Link to comment Share on other sites More sharing options...
HeadingNorth Posted September 12, 2011 Share Posted September 12, 2011 On the basis that you only pay the £40 and no more interest is added on, then the APR is 20%. That cannot be accurate; he's paying an extra 20% in two weeks, let alone the amount it would be in a year. This gadget claims to calculate APR from the numbers you input. I gave it a loan of £200, a fee of £40, an interest rate of zero and a total of 2 repayments, made weekly. If I set the "compound frequency" to daily, the APR comes out at 644.198%. If I set it to annual, the APR comes out at 59,235.3%. Link to comment Share on other sites More sharing options...
Sarkysod Posted September 12, 2011 Share Posted September 12, 2011 I got it to 2080%, £20 a week x 52. I could be wrong though, no doubt proven within the next few posts. Link to comment Share on other sites More sharing options...
Chris_Sleeps Posted September 12, 2011 Share Posted September 12, 2011 That cannot be accurate; he's paying an extra 20% in two weeks, let alone the amount it would be in a year. I worked it out in a Provident style loan. The interest is added on at the front and no more is added aslong as payments are made. I got a piece of paper out but the maths confused me to do it any other way. Link to comment Share on other sites More sharing options...
HeadingNorth Posted September 12, 2011 Share Posted September 12, 2011 I worked it out in a Provident style loan. The interest is added on at the front and no more is added aslong as payments are made. A loan can be made in that fashion, but - as I understand it - in order to calculate a comparable APR, you have to convert that up-front interest payment and figure out the equivalent interest rate if it was payable over the duration of the loan. Or something. I just know it's too complicated for me to work it out! Link to comment Share on other sites More sharing options...
chem1st Posted September 12, 2011 Share Posted September 12, 2011 It's essentially a 2 week 100% mortgage with an interest rate of 20%. Or £40 a fortnight on a £200 loan £80 a month on a £200 loan? Using an APR calculator on the internet assuming £80 a month on a £200 loan and one monthly repayment of £280, then 5569.4% APR Link to comment Share on other sites More sharing options...
0114owl1867 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 what a nightmare boss - charging you £40 to lend £200, if i was you i'd be looking for summat else sharpish Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.