Old Speckled Hen Posted July 14, 2009 Share Posted July 14, 2009 I am about to buy my daughter a new car. Long story, she needs to have one. She has a banger to trade in so there's 2K from HMG ... thankyou very much Peugot are doing a deal for £799 down and £99 monthly for 3 years. SO what I need is:- Assuming the £3564 was borrowed at 6.7%APR over three years what is the interest component of this £3564? I don't understand the calculations, HELP Thought I might go armed with this figure and offer the whole payment immediately less some of this interest. What do you think? Quote Link to comment Share on other sites More sharing options...
clootie Posted July 14, 2009 Share Posted July 14, 2009 Quote Link to comment Share on other sites More sharing options...
Scramble Posted July 14, 2009 Share Posted July 14, 2009 Ditto...errm. Calling Super Fred! Quote Link to comment Share on other sites More sharing options...
jlo Posted July 14, 2009 Share Posted July 14, 2009 Sorry - no help here either! Quote Link to comment Share on other sites More sharing options...
Happy-Mama Posted July 14, 2009 Share Posted July 14, 2009 (edited) removed my answer as next response explains without asking for the additional info i needed Edited July 14, 2009 by Guest Quote Link to comment Share on other sites More sharing options...
redhotchick Posted July 14, 2009 Share Posted July 14, 2009 http://www.ehow.com/how_4578456_calculate-interest-rate-loan.html It depends if simple interest or compound interest is applied. Either way offer them between £2,934 and £2,968 (the interest works out at £630 and £596) Quote Link to comment Share on other sites More sharing options...
Looney Posted July 14, 2009 Share Posted July 14, 2009 My maths isn't great! But just wanted to say, please check the small print on the payment agreement. Quite often you can't pay off the loan quicker than the original agreement and you will have to pay a hefty fee if you want to settle the balance early. This shouldn't cause a problem, but please bear in mind what would happen if your daughter wanted to change the car before the loan period is up or if for some reason the car becomes a write-off (fingers crossed this wouldn't happen!) Quote Link to comment Share on other sites More sharing options...
Happy-Mama Posted July 14, 2009 Share Posted July 14, 2009 you should be able to get a copy of the finance calculations from them. I did with a previous car, was a long excel spreadsheet calc but it made sense when i went through it and showed just how much capital/interest was being paid off each month Quote Link to comment Share on other sites More sharing options...
Old Speckled Hen Posted July 15, 2009 Author Share Posted July 15, 2009 http://www.ehow.com/how_4578456_calculate-interest-rate-loan.html It depends if simple interest or compound interest is applied. Either way offer them between £2,934 and £2,968 (the interest works out at £630 and £596) Wonderful, thanks Quote Link to comment Share on other sites More sharing options...
