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# Help understanding APRs

Posts: 404 Forumite
Can anyone help me please? I am trying to refine my best plan of action for paying off a flexible loan I have with Egg. The loan currently stands at £6,325.74 and the APR is 7.7%. My monthly repayments are on the 5th of the month and are £183.

I am trying to get this all into an Excel spreadhseet.
So on 5th June, I will pay £183, but obviously insterest has to go back on. I have done my sums as £6,325.74 / 100 * 7.7 = £487.08 / 12 = £40.59
Soon the 6th June my balance will be £6,325.74 - £183 + £40.59 = £6,183.33

Is this right?

Thanks!
Me debt free thanks to MSE :T

• Posts: 763 Forumite
Not completely sure about my maths, but I get interest as £48.71.
6325 times 7.7, press % = 48.70819
Does anyone else agree?
One half of the world cannot understand the pleasures of the other
• Posts: 58,629 Forumite
First month you pay £6,325.74x0.062%=£39.22 as interest and £183-£39.22 =£143.78 as a repayment, etc...

1 £6,325.74 £39.22 £143.78
2 £6,181.96 £38.33 £144.67
3 £6,037.30 £37.44 £145.56
4 £5,891.73 £36.53 £146.47
5 £5,745.27 £35.63 £147.37
6 £5,597.89 £34.71 £148.29
7 £5,449.60 £33.79 £149.21
8 £5,300.39 £32.87 £150.13
9 £5,150.26 £31.94 £151.06
................
35 £902.50 £5.60 £177.40
36 £725.09 £4.50 £178.50
37 £546.59 £3.39 £179.61
38 £366.98 £2.28 £180.72
39 £186.25 £1.15 £181.85
40 £4.41 £0.03 £182.97

More than 3 years :eek: and £815 of interest :eek: . Can you pay more every month?
• Posts: 58,629 Forumite
Not completely sure about my maths, but I get interest as £48.71.
6325 times 7.7, press % = 48.70819
Does anyone else agree?
You are at odds with maths! What will you do without a calculator?! :eek:
1% of 6325 is about 63
7.7% is 63*7.7 = about 450. The right answer is 487! :rotfl:
• Posts: 404 Forumite
Thanks for your help. I am about to transfer the debt over to 2 credit cards - and am just trying to work out the best deals. Have got a 0% card with Barlcaycard for £3,400 until December that I can then revert to life of balance 6.9%. Hoping to get another card to transfer the balance. I always though the 7.7% APR was a good rate. The loan was £7,500 when I first started paying it off but its totally flexible so I can pay it off early with no penalities. Palying arround with interest rates and doing the sums has actually made me realise how much earlier I could clear this debt if I played the game!
Me debt free thanks to MSE :T
• Posts: 1,010 Forumite
Years ago I was told that there are two % rates on a loan, apr and another. Could someone please explain which one is which (how it applies)?
Thanks
The best bargains are priceless!!!!!!!!!! :T :T :T
• Posts: 58,629 Forumite
Rebob wrote:
Years ago I was told that there are two % rates on a loan, apr and another. Could someone please explain which one is which (how it applies)?
If 'another' was 'flat rate', read 'APR vs Flat Rate Calculations' thread ...
This discussion has been closed.

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