Hi, I am confused, if a rise of 0.25% from 6.75% to 7.0% adds an additional £13 to monthly repayment, then what is the actual amount I am paying interest on over 12 months, can you give the calculations with answer please
2006-11-17 05:25:01 · 4 answers · asked by BobC 4 in Business & Finance ➔ Credit
Perhaps I should mention this is not a loan repayment, but some "incidental" charges to my morgage (which is less than £10,000.00)
2006-11-17 06:13:03 · update #1
If 0.25% hike in interest requires £13 pm extra,
this means 13x12 = 156 pa.
Therefore the annual interest for 7% is
156 / 0.25 x 7 = £4368
2006-11-17 05:40:08 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Assuming the rates are annual rate, (0.25%/12) of X = 13, that is X=62,400 which is the principal. The actual amount then now be calculated on this amount by using the relevant interest rate, either 6.75 or 7.00.
2006-11-17 05:35:06 · answer #2 · answered by mms 2 · 0⤊ 0⤋
Simple Interest Formulae -
PxTxR / 100x365 or
The Principle (The Value of the loan) x the Time (number of days) x the Rate (your 7%) DIVIDED BY 100x 365 = Simple Interest
So £5000 x 30 days x 7 / 100 x 365 = £28.77
2006-11-17 05:31:49 · answer #3 · answered by Boring Old Fart 3 · 0⤊ 0⤋
13x12=156 additional per year
2006-11-17 05:30:03 · answer #4 · answered by jack jack 7 · 0⤊ 0⤋