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How to calculate Minimum payments
macca500
Posts: 2 Newbie
in Credit cards
I have an assignment for school so this is entirley theoretical
Outstanding Balance = £2500
Interest= 17.6% (APR)
Minimum payments = 2%/£5
If only the minimum payments were made how do i calculate.
-Interest paid
-Months taken to be paid off
Thanks
Outstanding Balance = £2500
Interest= 17.6% (APR)
Minimum payments = 2%/£5
If only the minimum payments were made how do i calculate.
-Interest paid
-Months taken to be paid off
Thanks
0
Comments
-
Bloody hell that's a difficult school assignment. Does the interest apply monthly, and is that before or after the payments? It sounds like teacher hasn't thought this one through.0
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Ok, the following should help.
Total Interest Charges: £6,391.39
Number of Monthly Payments: 522
Total Number of Years: 43.50
Hope that helps.I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it.
This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
While I haven't checked the accuracy of your answer (looks slightly high / long), don't you think it would have been better to assist the OP in working out how to answer the question rather than just delivering the answer on a plate?Ok, the following should help.
Total Interest Charges: £6,391.39
Number of Monthly Payments: 522
Total Number of Years: 43.50
Hope that helps.0 -
Hi Macca500 - if you could give a bit more information about yourself and about your assignment it would help everyone know how best to help you. For example, what level of schooling are you in, what exam level or subject is this for, how does your teacher expect you to tackle the assignment (e.g. can you use a spreadsheet)? I know this might sound odd for what seems a straightforward question but the approach for a Year 7 pupil given this assignment as part of a PSHE project about handling money sensibly would be totally different to the approach for an A-level student doing advanced algebra!LBM August 2007Amount Owed £101,068.35
Amount Owed March 2012 £13,449.16
DFD October 20130 -
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