Interest Rate on a Loan

Graeme7777

In a newspaper advertisement that I saw recently the total cost of a loan (amount borrowed + interest) over the prescribed period as well as the APR was disclosed.

However, no mention was made of the amount of the regular, weekly re-payment. If one were to wish to calculate the weekly repayment, should one use the APR as the rate of interest? (I wouldn't have thought that this was the correct rate to use)

Thanks

CLAPTON

well, sounds like the type of loan is a rip off loan at very high interest for people in desperate situations

the answer to your question is this

divide the total cost of loan by the number of payment periods


so if the total cost of the loan is say 1,000
and you pay weekly over a year i.e. 52 weeks
then the weekly payments are 1000/52 = £19.23 per week

Graeme7777

Cheers Clapton