Help calculating APR please

Poppygal

Hi all, I wonder would anybody out there be able to help me figure out how much a loan of €16k cost me over 5 years at 7.8%APR. The more i'm trying to figure this out the more confused I'm getting.
Any help would be really appreciated

killers1

Poppygal wrote: »

Hi all, I wonder would anybody out there be able to help me figure out how much a loan of €16k cost me over 5 years at 7.8%APR. The more i'm trying to figure this out the more confused I'm getting.
Any help would be really appreciated

What are you trying to figure out exactly? The total amount repaid? Any idea what the interest rate is as opposed to the APR?

TiGeR KiNgS

My understanding is to use the compounding formula:

FV (future value) = 16000*(1.078)^5)

FV =23292.38

therefore, the cost to you is
7292.38

Poppygal

killers1 wrote: »

What are you trying to figure out exactly? The total amount repaid? Any idea what the interest rate is as opposed to the APR?

Hi Killers1, I'm looking at my credit agreement here but don't see an interest rate, only APR!!!
Yes, I need to know how much this cost me/how much I repaid, it was for legal fees which I'm trying to recover but I'm merged the loan at the time so I'm just trying to seperate them now but having a blonde moment

killers1

Poppygal wrote: »

Hi Killers1, I'm looking at my credit agreement here but don't see an interest rate, only APR!!!
Yes, I need to know how much this cost me/how much I repaid, it was for legal fees which I'm trying to recover but I'm merged the loan at the time so I'm just trying to seperate them now but having a blonde moment

Just multiply the monthly repayment by the number of repayments you made (60 if it was the full 5 yrs!) Then subtract the original loan amount i.e. €16k from total repaid to see total int paid.. My calculations work out that you were paying around €322pm which would have totalled €19,320 giving the cost of credit as €3,320...

killers1

TiGeR KiNgS wrote: »

My understanding is to use the compounding formula:

FV (future value) = 16000*(1.078)^5)

FV =23292.38

therefore, the cost to you is
7292.38

Looks a bit on the high side...

Poppygal

TiGeR KiNgS wrote: »

My understanding is to use the compounding formula:

FV (future value) = 16000*(1.078)^5)

FV =23292.38

therefore, the cost to you is
7292.38

OMG, could this be right, delighted if it is as I'm hoping to recover the costs but seems high!
Impressive formula btw, can I ask what (1.078) is about, for furure reference?

killers1

Poppygal wrote: »

Hi Killers1, I'm looking at my credit agreement here but don't see an interest rate, only APR!!!
Yes, I need to know how much this cost me/how much I repaid, it was for legal fees which I'm trying to recover but I'm merged the loan at the time so I'm just trying to seperate them now but having a blonde moment

What's the monthly repayment quoted on the credit agreement?

TiGeR KiNgS

Poppygal wrote: »

OMG, could this be right, delighted if it is as I'm hoping to recover the costs but seems high!
Impressive formula btw, can I ask what (1.078) is about, for furure reference?

http://en.wikipedia.org/wiki/Compound_interest

The compound interest formula is
FV = PV(1+r)^t

fv= future value
pv = present value
r = interest rate
t= time


BTW, It does seem very high all right. I wouldn't get your hopes up

Poppygal

killers1 wrote: »

Just multiply the monthly repayment by the number of repayments you made (60 if it was the full 5 yrs!) Then subtract the original loan amount i.e. €16k from total repaid to see total int paid.. My calculations work out that you were paying around €322pm which would have totalled €19,320 giving the cost of credit as €3,320...

A great idea but don't think i can get it to work for me becasue of the merge! I had a balance of €2,770 remaining from an older loan which was added to the €16k plus there was PLP (insurance) totaling €2,227.03, so all together my loan was for €20,997.03, over 60 months and paid back 419.87 p/mth. Total amount repayable, according to my credit agreement here was €25,256.14.
So, you see my problem, i'm getting into bother trying to seperate €16k from the the insurance and the €2,770

killers1

TiGeR KiNgS wrote: »

http://en.wikipedia.org/wiki/Compound_interest

The compound interest formula is
FV = PV(1+r)^t

fv= future value
pv = present value
r = interest rate
t= time


BTW, It does seem very high all right. I wouldn't get your hopes up

That formula's not going to work as it doesn't take into account that interest is calculated on the balance outstanding which is reducing all the time..

Poppygal

killers1 wrote: »

What are you trying to figure out exactly? The total amount repaid? Any idea what the interest rate is as opposed to the APR?

Killers1, I just found the interest rate, its 7.4% Right in front of me all the time:o

killers1

Poppygal wrote: »

A great idea but don't think i can get it to work for me becasue of the merge! I had a balance of €2,770 remaining from an older loan which was added to the €16k plus there was PLP (insurance) totaling €2,227.03, so all together my loan was for €20,997.03, over 60 months and paid back 419.87 p/mth. Total amount repayable, according to my credit agreement here was €25,256.14.
So, you see my problem, i'm getting into bother trying to seperate €16k from the the insurance and the €2,770

Here's the most accurate way I could work it out.... and it agrees with the figures I gave you above.....

Total Borrowing = €20,997.03......€16,000 is 76% of this figure so work out 76% of total credit i.e. €25,256.14@76% = €19,194 = total cost of credit €19,194-€16,000 = €3,194. Not 100% accurate but I think as close as you'll get...

vandriver

By my calculations,85.25% of the new loan was for the legal expenses,and 14.75% was for the old loan merged into the new loan.
The insurance would be to cover the total amount,so I have split it pro rata.
So,total cost of the 16,000 is €21,530.86 .

Poppygal

killers1 wrote: »

Here's the most accurate way I could work it out.... and it agrees with the figures I gave you above.....

Total Borrowing = €20,997.03......€16,000 is 76% of this figure so work out 76% of total credit i.e. €25,256.14@76% = €19,194 = total cost of credit €19,194-€16,000 = €3,194. Not 100% accurate but I think as close as you'll get...

That looks right, more in line what I would have expected. Thank you so much for persevering:) Theres a good chance interest isn't taken into consideration when it comes to recovering legal costs but I'm going to give it a shot Big thanks

killers1

Are you just trying to work out the €16k and what that would cost you to borrow over 5 yrs @ 7.4% ignoring the existing balance & payment insurance? If so, the monthly repayment on €16k@ 7.4% int rate & 7.8% APR amount to €322.95pm multiplied by 60 = €19,376.76 (total repayments) so cost of credit is €3,376.76

Poppygal

vandriver wrote: »

By my calculations,85.25% of the new loan was for the legal expenses,and 14.75% was for the old loan merged into the new loan.
The insurance would be to cover the total amount,so I have split it pro rata.
So,total cost of the 16,000 is €21,530.86 .

Thanks, liking your numbers

Poppygal

killers1 wrote: »

Are you just trying to work out the €16k and what that would cost you to borrow over 5 yrs @ 7.4% ignoring the existing balance & payment insurance? If so, the monthly repayment on €16k@ 7.4% int rate & 7.8% APR amount to €322.95pm multiplied by 60 = €19,376.76 (total repayments) so cost of credit is €3,376.76

Yup, Thats exactially what I was looking for. Whatever hope I have of getting the interest back I'd have no hope of getting the loan insurance cost back. Thanks again for your help, spot on, as they say

killers1

Poppygal wrote: »

Yup, Thats exactially what I was looking for. Whatever hope I have of getting the interest back I'd have no hope of getting the loan insurance cost back. Thanks again for your help, spot on, as they say

Those figures are accurate & should stand up in court if needs be!;) Feel a headache coming on.....

Poppygal

killers1 wrote: »

Those figures are accurate & should stand up in court if needs be!;) Feel a headache coming on.....

Yes, headaches all round, one for all of you after trying to do the maths for me and one hell of a migraine for me trying to get my money back!! Disprins are on me :P

killers1

Poppygal wrote: »

killers1 wrote: »

Those figures are accurate & should stand up in court if needs be!;) Feel a headache coming on.....

Yes, headaches all round, one for all of you after trying to do the maths for me and one hell of a migraine for me trying to get my money back!! Disprins are on me :P

Best of luck! I hope you get all your money back!!