http://en.wikipedia.org/wiki/Compound_interest

Try the above which has plenty of formulas' which I don't fully understand. Maths not my subject.

H

Can someone tell me the formula for working out the interest form the intrest amount and principal amount + time?

Thanks, but the APR and rate of interest can be the same if the interest is not compounded as in this case, just cant work out how they get the 7.9%. 7.9% of the total amount of loan = 546.13 per month over 4 years and not what is stated on the agreeement.

Really need an expert who knows about fixed rate interest added at start of loan guru me thinks

CASEYJONES64:

http://s604.photobucket.com/albums/tt126/caseyjones64/?action=view&current=NRCREDAGG.jpg&newest=1

Its a non compounded fixed interest agreement with an interest rate and APR of 7.9%. Its states that the total interest will be added to the capital at start of loan.

I have tried many calculators and the totla interest and monthly payments do not compute to 7.9% (i thnk)

Thanks in advance

I'm no expert, but I don't think an APR (annual percentage rate) can possibly be the same as the interest rate, since I think the interest rate should be calculated as the total interest over the whole 4 years term.

http://s604.photobucket.com/albums/tt126/caseyjones64/?action=view&current=NRCREDAGG.jpg&newest=1

Its a non compounded fixed interest agreement with an interest rate and APR of 7.9%. Its states that the total interest will be added to the capital at start of loan.

I have tried many calculators and the totla interest and monthly payments do not compute to 7.9% (i thnk)

Thanks in advance