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APR question
Former Member
Posts: 1,876,323 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!
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!
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This link should help you with your sums...
What is APR?