How to work out interest?

CreditCardChris · 30 January 2020 at 5:04PM

I feel silly asking this question but I just want to double check I'm reading it correctly before making this purchase. I want to make a purchase of £5,200 on my amex card which has a simple monthly interest rate of 1.74%.

I'll pay off £2,500 immediately and then pay off £700 a month so in 4 months the remaining £2,700 will be paid off.

Is the interest I paid calculated like follows:

Month 1 = £2,700.00 + 1.74% = £2,746.98 - £700 = £2,046.98.
Month 2 = £2,046.98 + 1.74% = £2,082.60 - £700 = £1,382.60.

etc etc. So in total I will have paid £118.95 interest? I think that's correct?

P.S I may even just open a 0% balance transfer card and put it on there but we'll see.