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    a genius with numbers needed

    £70,000 less lump sum payment of 10% each year
    an interest rate of 6%
    monthly payments of £750 plus over payments of another £750
    how long will it take to pay it all off?

    12 Comments

    Your life time, your sons life time and your sons sons life time π.

    Assuming the 10% is applied at the end of each year approx 4 years

    explain what u mean with "plus over payments of another 750"
    does that mean ur gonna pay 1400 every month?
    Then ur looking at about 4 years and 2 months

    yes he meant 1500 pcm (typo - 1400?)

    Forsaken;1782955

    Assuming the 10% is applied at the end of each year approx 4 years



    Your right i misread maybe,
    I only calculated the 10% once
    then yearly interest of 6%

    Forsaken;1783011

    yes he meant 1500 pcm (typo - 1400?)




    lol yes and she

    oops - apologies

    simple or compound interest??

    If interest is calculated monthly (6% = 0.4867%ish/month)
    If you are paying £1500 a month
    If you are paying an additional £7000 (10%) on every anniversary

    then after 37 months you'd owe just over £700 for a final payment ;-)

    (paying back around about £75770 in total)

    I applied 10% on outstanding balance not original amount which would explain the different amortisation periods

    you guys are too clever for your own good :-D

    Original Poster

    the 10% is of the outstanding balance so after year one it wont be 7000 - it will be 70000 - 7000 - (1500x12) - SORRY!!! with all the numbers involved I forgot that bit!

    thanks for all the help.

    Im locked in to my deal for another 6 years and the penaltys at the moment are £5000 to come out of it now but I am allowed to pay this 10% PLUS the overpayment of an equal amount to the monthly payment hense the £1500 but this means that I will be paying it off before the end of the lock in period and it has been suggested that I may still get early redemption charges even tho they have said I can make these extra payments without EDC!!! can anyone explain this any further???
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