Bank Interest?

How is bank interest usually worked out on a loan e.g if I were to borrow 鎷?00,000 over 3 years @ say 8% what will the repayments be per month

Bank Interest?

I see a lot of bogus answers in here. Let me add a simple one. Access the web, search for a mortgage/loan amortization calculator and follow the instructions. You normally have to input the same data you gave us here: principal, interest rate, and term(years). The calculator will give you the answer. You do not need to convert currency as some one suggested. The math is the same for any currency - the payments will be in whatever currency you negotiated the loan.

Bank Interest?

Your bank should have a calculation table for you to use and print. Sometimes it's directly on their websites othertimes you need to call to request it. Each bank can figure out interest differently, and also if they have additional fees, etc.

Bank Interest?

monthly payments would be 鎷?133.64

interest would be 鎷?2810.92

total for credit would be 鎷?12810.92

Bank Interest?

Hi,

you would have to times 100,000 by 8 and divide by 100 for the year and divide by 12 (monthly payments). depending on how regular the interest is added to the acount, daily, monthly, you will have to talk to your bank building society etc.

Babs

Bank Interest?

This is in dollars, not pounds or euro, so convert if necessary. A loan of $100,000 for 36 periods at 8%:

monthly payment of $3133.64

total interest over life of loan $12,811.04

Bank Interest?

your lender will calculate all that for you

Bank Interest?

Stavo (above) is right. The bank will charge you 8% of the 鎷?00,000 every year. That will be 鎷?,000 x 3 = 鎷?4,000 in interest. So the bank sees your loan as 鎷?24,000. Divide that by 3 x 12 months (36) and you will be paying 鎷?,444.44 a month, plus any adminsitration charges, opening fees and other sucker punches they want to throw at you (as they do!).

Look for a loan that reduces the interest as the capital is being paid off. Then every month when you pay off some of the capital, the interest should go down as you owe less and less.Stavo suggested a mortgage because that kind of loan does reduce interest as the capital goes down.

Another idea is to set up a term insurance policy that will pay off the capital in 3 years to the bank. That way could save you money or even earn you a bonus on payout day.