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Hi sir, its me again. I would like to ask how to calculate start owing 67,267 and over 72mths the debt will be paid off? can clarify the calculation to me? and the finance charge for first year 3139.41? how to calculate for it?
I am a bit confused for it.and I am not understand the sentence u mentioned following. Can explain it to me again in more details? May I knw sir is using which method of calculation for the interest you showed me?
thanks you quite a lot and sorry for disturbing youAs a matter of interest, if you’re paying 1083.33 per month and the interest rate is 5%, you start owing $67,267 and, over 72 months, the debt will be paid off
The first year’s finance charge would be $3,139.41
If it really is $70,000 that you owe and the rate is 5%, you should be paying $1,127.34 each month and the finance charge for the first year would be $3,266.97
And finally, if the debt is $70,000 and you are paying $1,083.33 per month, the interest rate is 4.978% and the first year’s interest is $3,254.30
What do you think took me 4 hours to reply to your first post?
I’ve been playing on an Excel spreadsheet with 4 columns and 72 rows changing the various variables using $70,000 as a start point
Then using $1,083.33 as a further start point and finally using both $70,000 AND $1,083.33 as a start point to work out the rate of interest
You really do not need all this! Trust me … it was just me playing around with Excel
OK?
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