calculate interest

v8avm | 12:53 Fri 09th Dec 2011 | Business & Finance

12 Answers

Hi can anyone help figure out this interest for me
The sum is £5,259.80 plus 8% interest over 11 years
thanks for your help
never was good at sums

CCJ's

MOVING A SHOP'S PAVEMENT SIGN

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Calibax

If it's compound interest calculated annually then
5259.80 x (1.08^11) = 12263.95

beso

Compound interest needs a lot of calcultion. Most banks have online calculators to do it for you.

rojash

If it's compounded annually then the 8% will be calculated on the OS balance at the end of each year, which should give a result considerably lower than that in Calibax' answer.

factor-fiction

Yes, it depends whether you are paying it off in instalments and the frequency of the instalments. Is 8% quoted as the APR?

Calibax

Sorry, I was calculating it as an increasing balance rather than a reducing one.
That would depend on the size and frequency of the payments.

buildersmate

If the question is 'I am about to enter into a loan repayment where I pay monthly the same amount over the 11 year period, the sum borrowed is £5259.80p and the interest rate is 8% per annum then the following is the answer:
Monthly repayment - £60.05p per month for each of 132 months (11x12)
Total interest paid over the 11 year period - £2665.32p
The loan is paid off after 132 payments.