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Help understanding APR% over a particular amount of months
notsureofanything
Posts: 2 Newbie
in Loans
Hi guys,
I'm really not good at this sort of thing so if people could explain in layman's terms that would be much appreciated. I want to pay for a medical treatment which costs £1550, however I've provides an option of £40.24 per month (14.9 APR, 36 Months) or £72.57 per month (16.9 APR, 18 months). So what will these extra costs amount to? In addition how do I work this out for future reference?
Many thanks!
I'm really not good at this sort of thing so if people could explain in layman's terms that would be much appreciated. I want to pay for a medical treatment which costs £1550, however I've provides an option of £40.24 per month (14.9 APR, 36 Months) or £72.57 per month (16.9 APR, 18 months). So what will these extra costs amount to? In addition how do I work this out for future reference?
Many thanks!
0
Comments
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Is there a deposit/downpayment involved? Your instalment payments add up to less than the cash payment price.0
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You don't really need to understand APR. It's as simple as multiplying the monthly payment by the number of payments.0
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The deposit is £250, sorry forgot to add that!0
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Wont the NHS do it?0
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You don't really need to understand APR. It's as simple as multiplying the monthly payment by the number of payments.
Indeed.
So in the OP's case, the 36 month option costs £1448.64 + £250, which is £148.64 more than the cash price, and the 18 month option is £1556.26, which is only £5.26 more than the cash price.
I have my doubts about the 18 month price, as that payment schedule is nowhere near the quoted APR.0
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