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interest on loans
woodkitten
Posts: 133 Forumite
in Loans
Hi, we are thinking of taking a loan for 12,000 over 5 years to buy a car, the best i can see is Asda at 5.9% the payments would be £230.59 per mth the total would come to 13,835.40 . We could pay for the car from savings but the other half thinks when it has gone it's gone.
He thinks maybe a better way would be to keep the money in a savings account like the silver savers ( just about qualify ha ha ) for 5 years, martins best but was saga, this would mean we would hold on to the savings of 12,000 earning interest over the 5 years. I have looked into the northern rock silver savers online calculater and over the 5 years it looks like it would make around £3060.38 i am not sure how to go with this any ideas as my number crunching is rubbish i have taken all the figures from the websites. ps the loan payments would not be a problem. just trying to understand how the interest is worked out, how do they work the interest out on the loans to come to the final figures. ANY HELP UNDERSTANDING THIS PLEASE AND WITH THE ABOVE.
cheers woodkitten
He thinks maybe a better way would be to keep the money in a savings account like the silver savers ( just about qualify ha ha ) for 5 years, martins best but was saga, this would mean we would hold on to the savings of 12,000 earning interest over the 5 years. I have looked into the northern rock silver savers online calculater and over the 5 years it looks like it would make around £3060.38 i am not sure how to go with this any ideas as my number crunching is rubbish i have taken all the figures from the websites. ps the loan payments would not be a problem. just trying to understand how the interest is worked out, how do they work the interest out on the loans to come to the final figures. ANY HELP UNDERSTANDING THIS PLEASE AND WITH THE ABOVE.
cheers woodkitten
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