Are you APR aware? Poll results & discussion
Comments
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Might have been more interesting to have a 'Don't have a clue' option just to see what percentage really don't know and wouldn't have a clue how to work it out.0
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Might have been more interesting to have a 'Don't have a clue' option just to see what percentage really don't know and wouldn't have a clue how to work it out.
I think the poll results gives a pretty good idea of that!Martin Lewis, Money Saving Expert.
Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.Debt-Free Wannabee Official Nerd Club: (Honorary) Members number 0000 -
Does anyone know how many stars there are in the sky?
Or is that next week's poll?0 -
MSE_Martin wrote: »I think the poll results gives a pretty good idea of that!0
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For all you money saving experts out there, I think the answer is M :j & if anyone wants to borrow a £10 at those rates I have loads waiting here for you. :T0
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crikey! wish i had stuck in at maths class now lol
obviously why i am in debt eh
bonnie0 -
If the £10 debt was repaid with £1 interest on top after one day then the flat rate of interest is 10%.
If, over the course of a year, that single £10 for a day was all you borrowed and you only paid the single £1 interest charge then the Annual Percentage Rate is £1 ÷ £10 = 0.1 x 100 = 10% APR.
However, if immediately after repaying the £10 you then borrowed another £10 and paid that back the next day with £1 interest and then repeated this every day for the next year then you would pay a total of £365 (£366 in a leap year) in interest for a daily loan facility of just £10.
The Annual Percentage Rate could then be calculated as £365 ÷ £10 = 36.5 x 100 = 3,650% APR.:think:
However, this APR figure doesn't take into account any compounding of interest, loan application fees, reservation fees, fees for not paying by direct debit, penalties for late payment or early settlement, loan discharge fees or any other fees the lender can get away with!
Where's the smiley for my head blowing up?I ave a dodgy H, so sometimes I will sound dead common, on occasion dead stupid and rarely, pig ignorant. Sometimes I may be these things, but I will always blame it on my dodgy H.
Sorry, I'm a bit of a grumble weed today, no offence intended ... well it might be, but I'll be sorry.0 -
By my calcs the APR is 3650%, or 3660% if it's a leap year!
Daily interest is 10% (£1 interest for every £10 borrowed)
Multiply by days in the year and you get 3650%
Compound interest would mean a grand total of £12,833,055,803,133,500.00 which you will need to pay at the end of the year :eek:
£14,116,361,383,446,900.00 if you're unlucky enough to borrow in a leap year:rotfl:
Miles.0 -
To all the people talking about the fact you may or may not have paid back the pound - it doesn't matter.
How much you pay back each month doesn't affect the APR of your credit card, it affects how much interest YOU pay. Those are entirely different things. The answer is the huuuuge number people have been mentioning. I picked the one below that (was it £10 Billion?) when I had a stab at it before going for the calculator
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What are you people all talking about? You borrow £10. You pay back £11. One year later you've paid £11 back on a loan of £10. That's 10% according to my school-boy maths. What other answer could there be?0
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