Very Quick Loan Calculation Question

landghove

My MBNA CC is offering a money transfer to my bank account of 4.9%PA for 36 months.

I am looking to buy a car and have been offered a loan of 19%APR

What does 4.9%PA work out to be for a £6,000 loan?

Thanks!

Ebe_Scrooge

£179.27 per month, total repayable £6453.69

There's probably a transfer fee as well that you'll need to factor in.

19% for a personal loan sounds bloomin' steep!!

landghove

Thanks Ebe, there is no transfer fee which is nice, so what is 4.9% PA as APR? (just out of interest?)

TrickyDicky101

landghove said:

Thanks Ebe, there is no transfer fee which is nice, so what is 4.9% PA as APR? (just out of interest?)

Assuming the 4.9% compounds monthly (being a credit card that is a reasonable assumption) then it is equivalent to an apr of 5.01% so considerably better than 19%!

MEM62

landghove said:

Thanks Ebe, there is no transfer fee which is nice, so what is 4.9% PA as APR? (just out of interest?)

The 4.9%, if a balance transfer fee, is a one-off charge.  Therefore, there will be no equivalent APR.  In any case, it is a much cheaper alternative to the loan so, if you must finance your car, it is a bit of a no-brainer.