and the interest is 14% i end up paying back £1710???? Sorry i'm so stupid at this type of thing!
2006-11-19 22:51:56 · 11 answers · asked by GeorgieP 4 in Science & Mathematics ➔ Mathematics
i need to borrow £1500 and my grandparents said they would lend it to me but i would have to pay them back at a rate of 14%. I was just checking my calculations!
2006-11-19 23:05:12 · update #1
You are correct;
If you borrow ₤1500 at the interest of 14%
You will be paying back ₤1710 as the interest is ₤210 (value of 14% of ₤1,500)
You will be paying the Principal (₤1,500) plus the interest (₤210)
giving you a total of ₤1710.
You are not stupid, no one knows it all.
2006-11-19 23:07:34 · answer #1 · answered by Reverend 1 · 1⤊ 0⤋
Yeah £1710. Work out a monthly sum you can pay back with them (sure your grandparents will be accomodating), say £71 a month over 2 years. I am sure they don't mean 14% as an APR.
2006-11-19 23:16:48 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It's only that simple if you borrow the money and then pay it back in a lump sum at a fixed 14% for the time you borrowed the money.
Normally when you borrow the money you pay it back, and earn interst every period (usually a month) which complicates the calculation.
Add some more detail and we can probably help.
2006-11-19 22:55:44 · answer #3 · answered by MATT D 2 · 0⤊ 0⤋
that's correct, if you borrowed £1500 and the interest was 14% you would pay back 1710. see, its not that hard, good job!
2006-11-19 22:57:47 · answer #4 · answered by iamjuniorsemail@verizon.net 1 · 0⤊ 0⤋
yer thats correct. £1710 but why are they charging so much Northern Rock do loans ad they only charge 5.4% subject to status and all that palava!! I would ask them to reconsider there interest rates!!
2006-11-20 02:46:48 · answer #5 · answered by nicnac 3 · 0⤊ 0⤋
Tell us the loan amount, how long you want to take it out and the interest amount for the period if its fixed.
Another thing to note is are you paying back the interest or the capital or both?
2006-11-19 23:04:41 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Bit tight of your grandparents to be charging interest. I reckon you could get a better rate elsewhere.
2006-11-19 23:55:42 · answer #7 · answered by Anonymous · 0⤊ 0⤋
What do you want the money for?
Is your 14% the APR?--if so, don't do it.
Usually these rates are calculable by computer----but if it's from a loan shark-he will calculate it with a hammer.
2006-11-19 23:02:51 · answer #8 · answered by goatherd 2 · 0⤊ 0⤋
What you pay back depends on how long you have the loan out for.
2006-11-19 22:54:55 · answer #9 · answered by Anonymous · 0⤊ 0⤋
just declare yourself bankrupt
2006-11-19 22:54:20 · answer #10 · answered by Anonymous · 0⤊ 3⤋