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Maths help: credit card "illustrative example"
newsmonkey
Posts: 201 Forumite
in Credit cards
I'm writing a piece on student credit cards, but am not mathematically-minded enough to work this out:
£500 purchase on a card (nothing else)
18.9% APR
only make minimum repayments of 3% or £5 or balance if less than £5
Summary box says £81.17 interest in the first year,
£67.33 in the second year,
total time to clear debt would be 9 years, 8 months.
I'm trying to work out how much you'd end up paying back in total (ie: the overall cost of credit)
£500 purchase on a card (nothing else)
18.9% APR
only make minimum repayments of 3% or £5 or balance if less than £5
Summary box says £81.17 interest in the first year,
£67.33 in the second year,
total time to clear debt would be 9 years, 8 months.
I'm trying to work out how much you'd end up paying back in total (ie: the overall cost of credit)
0
Comments
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Run your figures through the calculator at http://www.whatsthecost.com/creditCard.aspx0
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