BOI hire purchase query

Cookie_Monster

I have a HP agreement with BOI. It's a fixed interest one over 3 years

I'm trying to figure out the consequence of asking to extend it to 4 years. I have been on to them but need to write to them requesting it with a plan etc.
Thats all fine.

For my own calculation I am trying to figure out how the interest is calculated.
I have the total interest and obvious the initial amount and the repayments and the time period.

Is the interest calculated monthly on the reducing balance? Or is it simply the initial figure x % divided by the number of payment periods.

What I am trying to figure out is if I do extend it to 4 years what the interest impact will be (ex of any fees etc)

So is it
Initial amount + monthly interest* - monthly repayment = monthly closing bal

* = initial amount x yearly % / 12 months
yearly % = self calculated figure to make interest payable = total interest (given figure)

:o:o

3DataModem

Not that simple. What's your interest rate, and how long are you into the 3 years, and ill do the calc.

Cookie_Monster

3DataModem wrote: »

Not that simple. What's your interest rate, and how long are you into the 3 years, and ill do the calc.

See thats the prob. I don't know the interest rate. I know total interest due and initial amount, nowhere on the contract is there an interest % given.

Anyway I sent of the letter with what I thought was a reasonable calculation of interest due if it was extended plus another 5% for leeway so I guess this whole thread is kinda pointless now that I've done it except for my own interest

Initial: 22,000
Total interest 2633
Payments 36
paid 8 months so far.