apr ?

[annie b]

iam very confused about a.p.r. rates. if i buy a computer that cost �739 or �20 per month and the apr is 18.9 % what is the total cost ?

[stoo_pid]

There are loads of APR calculators on the net but in brief you would be paying your loan off for 54 months and you would pay approx �330.00 in interest

[Oneeyedvic]

Easiest thing is to look at how much you are paying back (�20 per month) and multiply it by how long the term is for (eg 5 years - 60 months) this then works out at the total cost (eg �1200.00) Subtract the cost price (eg �739.00) and you will see how much the interest willcost you. Although the government think the APR is good for comparissons I think it is ludicrous - look at how much you are paying back and what the period is. As an exmaple - if you were to borrow �25 of me for a week, pay it back the following week and buy me a pint (�2.50) - this would be an APR of over 400% - seems ludicrous doesn't it.

[TariqE]

18.9% APR is a lot- more than most credit cards Ask your bank for an overdraft for the �739- it will work out far cheaper.

[patriciather]

look on jeeves website and type in loans and click on "view list" ive found this the best for loans-start from 5.9 apr

[Didwot]

APR stands for Annual Percentage Rate, and this is calculated by comparing the total charge for credit which will include all fees etc as well as the interest, with the amount of the loan, and the period of repayment and taking into accolunt as well the regualrity of payments. It is meant to reperesent the real cost of the loan.
I assume you are referring to a loan of �739 at 18.9% APR paid at �20 per month, which will take about 60 months to clear the loan, during which time you will pay �1200 and the total cost will be the differnce between that figure and �739, ie �461. It may be that stoo_pid has fone the calculation more carefully than I have. I have to add that this information must be included on the loan agreement, so far from being confused you just need to read before you sign. Is this a quiz question rather than a genuine inquiry?