MoneySavingExpert Chair, Martin Lewis · Editor, Marcus Herbert

# MSE Forum

edited 6 July 2021 at 4:15PM
50 replies 13.3K views

## Replies

• edited 25 June 2020 at 5:04PM
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edited 25 June 2020 at 5:04PM
MollyR said:
From the answers given, tne interest rates are not APRs (although, when I calculated the answers on the assumption that they were APRs, the options ended up in the same order).  I think these answers are calculated on the basis of the amount outstanding reducing each month, so the interest chargeable also reduces each month.  If I had to, I would put the figures into a spreadsheet to check this, but it's not the sort of thing that I can do as mental arithmetic.
Thanks! This is the answer I was looking for as couldn't figure out how they got the figures (although I worked out correctly which is the best one).
I managed to confirm your theory by finding a Loan repayment calculator by The Guardian which worked out that the total interest on Loan 5 is 3.83% which clarifies it (£100 + 3.83% = £103.83 + £3 charge = £106.83) although looks like they rounded it down ever so slightly unless the calculator is slightly off.
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I have just completed all 6 modules. I enjoyed the course. Am Looking forward to applying this newly acquired knowledge in improving my own finances.
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For those who are struggling to work out how the figures for loans 3-5 are calculated in the above post by ajmoney, putting the figures into a loan calculator website such as the one on MSE or Moneyfacts might help. So with a loan of £100 at an interest rate of 5% repayable over 12 months, the total amount repayable will be £102.67. Add the £10 arrangement fee detailed in the question and you get £112.67 (which is near enough to the £112.70 answer given in the question). The other loans can be explained the same way.

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I am just starting the MSE Academy of Money and this is so apt for these times. I'm really looking forward to this as learning about money has never been my priority and i definitely want to change that outlook of mine.
Wishing all the students the very best.
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I finished the course last night and it’s probably the first thing I’ve completed in lockdown. At the start of lockdown I enthusiastically signed up to “all” the free courses 😂. Anyway I enjoyed doing this course and I’ve learned things that will be very helpful to me. I found explanations to be clear and in plain English. I now understand how my pension works! Something I’ve not understood for the decade I’ve had it. Thanks OU and MSE for creating this course.
NST 🐢 MFW 🤸🏽‍♂️ original MFD: Jun 2040. Now: Jul 2031.
Living frugal to live fuller
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I'm a bit late to the party, but I've just signed up for this course. Really looking forward to completing it and filling in any gaps in my knowledge!
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I did it early on, but never got around to taking the final test.  So what I'm going to do is to start it all over again sometime soon, and see how much of it has stuck in my memory!
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Well I've just finished the first session and I am impressed! Really made me realise how much I get sucked in by marketing tactics when spending. Much more detailed than I expected, looking forward to completing the rest of the course!
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Having huge problem registering for the course. It keeps saying the email address is wrong (it isn’t) and I don’t have a password either
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I started when it came out.... and haven’t even finished the first module, I’ll get round to it!