The principal amount on a $ 250.00 loan

The principle amount would be $250. To figure out the finance charge you would need to know the interest rate.

I am so dumb-

loan is 250.00
finance charge $ 75.00
percentage rate is 684.38%

:lol:

Principle - $250

How long is the loan term for?

AH--------------------- :shock:

Pretty much what the interest rate means is that if you were to pay on this loan for a whole year, paying the $75 every 2 weeks, you would pay a total of almost $1800.

ok- I dont know that amount though.......thanks for your help...

Don't know what amount?

I have no idea how long the term was.

Oh, then yeah, you would not be able to calculate it out to see how much you would end up paying.

I just got a copy of an old loan that I got and I'm emailing them and it doesnt say anything about a term....its an old contract...

If it's a pdl the normal term is one pay period, about 2 weeks. But if you keep rolling over the loan the term grows.

yes, and since rollovers are not permitted I am telling them what I will be sending them what I LEGALLY owe via USPS....... :D

Tweety I pm'd the info to you for a 2 week pdl at Indiana rates. Hope that helps you!!

Yes, I got it.....Thanks so much.

Depends whether the loan is simple interest (daily interest) or precomputed (Rule of 78ths). I think most PDLs use simple interest...

Basically, under a simple interest method, you are charged one day worth of interest for each day that elapses in between payments.

To calculate a day worth of interest is relatively simple. First we need to take the apr (Annual % Rate) and turn it into a Daily rate ... simply divide the APR by 365 ... 684.38/365 = 1.875% per day. Then multiple the daily rate times your principle balance ... 1.875% * $250 = $4.69/day interest.

Then multiple that times the number of days you will have your loan open (14 days?) --- $4.69 X 14 = $65.66.

If you loan term was 14 days, then you should only be paying $65.66 interest. However, $4.69 X 16 is right at $75, so maybe your loan term was 16 days not 14.

Thank you for your input :D

How about the interest on a 200.00 loan? I cant figure it out....... :(

To calculate simple interest do as follows:

Amount x Rate x (amount of days in term/365)

So for a $200 loan at 684.36% it would look like:

200 x 6.8436 x (14/365) *assuming a 14 day term

= $52.50

Is the apr the same as in the above example?? Then it would be $52.50 for 14 days.