Please help me with some maths

ti1980

I've never been any good at maths so I can't work these equations out.
Hoping a kind MSEer will do it for me.

I want to do a bit of credit card shuffling and need to get some figures in my head.

If I borrowed £2500 from a credit card (SBT) at an APR of 5.9%, how much would this cost me in a year? Also how much would the same amount cost me at 6.9 APR.

Also if I was to borrow £1300 at 5.9% APR and 6.9% APR and 9.9% APR, how much would this cost me over the year?

Thanks in advance for your help.

robnye

simply multiply the amount by the interest rate percentage then divide by 100

so 2500 * 5.9 = 14750
then divide by 100 : 14750/100

so
2500 * 5.9% = £147.50
2500 * 6.9% = £172.50

1300 * 5.9% = £76.70
1300 * 6.9% = £89.70
1300 * 9.9% = £128.70

grumbler

Just small addition: actual cost will be a little lower because the debt amount decrases during a year as a result of repayments. This depends on a minimum monthly payment and is a little more difficult to calculate. If you pay more than minimum payments cost will be even smaller.

ti1980

Thanks guys, the equations are great. I can work out the rest myself now and save myself loads of money!

robnye

grumbler wrote:

Just small addition: actual cost will be a little lower because the debt amount decrases during a year as a result of repayments. This depends on a minimum monthly payment and is a little more difficult to calculate. If you pay more than minimum payments cost will be even smaller.

yeh i know, but the equation is horrible to look at let alone work out on paper........ :eek:

klondyke

robnye wrote:

yeh i know, but the equation is horrible to look at let alone work out on paper........ :eek:

Just plug the equation into the google search box and press search to use google calculator.

Martinslovechild

Check out What's The Cost for accurate details of costs etc.

ti1980

Using that site has given me some very useful figures, thanks for that. Extremely informative.

CTT_2

Martinslovechild wrote:

Check out What's The Cost for accurate details of costs etc.

Brilliant site.
Thanks,