Working out interest deal

Hi guys, I need some help. My CC company have offered me 2 money transfer deals. The one I would normally opt for is the 0% interest free (albeit it's for a shorter period).
The second one is 4.9% interest p.a. over 48 months with a 0% fee. The amount I'd borrow is £5580. The 48 month appeals.
My brain is having a rough time trying to figure out how the 4.9% interest accumulates to? Can anyone help me work this out? Thanks
"...and in the end, the love you take, is equal to the love you make".

Comments

  • eskbanker
    eskbanker Posts: 29,836
    First Anniversary Name Dropper Photogenic First Post
    Forumite
    Multiplying the two numbers gives an annual interest cost of £273.42 if you were only paying the interest, but your minimum monthly repayment will include an element of capital (typically at least 1% of the balance), so that figure will decrease over the period, probably taking the total interest below £1K over the four years.
  • mizfiesta
    mizfiesta Posts: 480
    Photogenic First Post First Anniversary
    Forumite
    eskbanker said:
    Multiplying the two numbers gives an annual interest cost of £273.42 if you were only paying the interest, but your minimum monthly repayment will include an element of capital (typically at least 1% of the balance), so that figure will decrease over the period, probably taking the total interest below £1K over the four years.


    Thanks Eskbanker. Much appreciated.
    "...and in the end, the love you take, is equal to the love you make".
Meet your Ambassadors

Categories

  • All Categories
  • 341.5K Banking & Borrowing
  • 249.7K Reduce Debt & Boost Income
  • 449.1K Spending & Discounts
  • 233.8K Work, Benefits & Business
  • 606K Mortgages, Homes & Bills
  • 172.4K Life & Family
  • 246.5K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards