Working out interest deal

mizfiesta

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

eskbanker

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

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.