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APR question

Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
Just a quick question about APR as it really confuses me!

If I took out a loan of £1000 with a rate of 10% APR, had the loan for 12 months without making repayments and then paid it all back right after the 12 months, how much would I end up paying back?

Sorry if that sounds really stupid but some people say it would be £1100 and others say it would be 10% interest per month, and then interest on the interest every month, so I am now really confused!

Comments

  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    wouldnt the loan company be giving you shit, ruin your credit record and possibly bailiffs? nevermind how much you'd owe
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    No, I am just assuming for the sake of the question that it is a loan that you don't have to start making repayments on until after 12 months.
  • PearlyPearly ********* Posts: 345 The Mix Regular
    Hiya,

    This link should help you with your sums...

    What is APR?
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    you need to know the interest rate too though
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Isn't the basic interest rate included in the APR though? Argh it is all so confusing, no wonder people end up getting themselves into trillions of pounds worth of debt! Thanks for your suggestions though guys.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Basic interest rate will be the fixed rate.
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