Interest Percent on Payday Loan?
Date: Wed, 05/14/2008 - 12:42
But... I don't have the "contracts" that the internet PDL's send you and I wanted to calculate the actual APR/Interest Rate that I paid on each loan I took out.
For example:
I loaned for $600 and the interest equaled $152 for a total of $752 due. What was the interest rate to = $152?
Was that clear? I know my brain is a little fuddled right now with calling the AG and typing to BBB and FTC.
The loans are:
CTC: $600 interest $152 - Interest % equals?
Epayday: $400 interest $120 - Interest % equals?
VC Funding: $300 interest $90 - Interest % equals?
VIP Cash: $250 interest $315 (paid $130) - Interest % equals?
THESE TWO APPEARED AFTER SEVERAL YEARS OF NOT HEARING FROM THEM OR DEALING WITH THEM
Ameriloan: Alleged owed amount $410 (possibly $300 with $110 interest - Interest % equals?)
United Cash Loans: Alleged owed amount $505 (possibly $400 loan with $105 interest - Interest % equals?)
I see how to do it by knowing the percentage, but I don't get how to do it by knowing the service fee and how to get the percentage rate?
My brain is mush.
Actually payday loans are illegal/prohibited in MD...and if I we
Actually payday loans are illegal/prohibited in MD...and if I were you, I would just pay back the principal amount only. I know that doesnt answer your question, but I wouldnt even take the time to try to figure it out. I can assure you that the contracts from the PDL's will be useless as the rate will be around 300-500%.
You need a period of time (t) in order to calculate. In each ca
You need a period of time (t) in order to calculate. In each case, how long did they charge you interest for?
For example, your CTC loan of $600 -- if $152 was the interest for two weeks, you would use the following steps:
FIRST, you will calculate the interest rate per period. This is done by dividing the periodic interest ($152) into the principal ($600). 152/600 = 25.33%. 25.33% is the periodic interest rate.
SECOND, you need to convert the periodic rate into an apr. You do this by multiplying the periodic rate (Step 1) times the number of periods in a year. In this case, the period is two weeks ... so there are 26 periods in a year. 25.33 * 26 = 658.58% APR.
Let's try Epayday: Suppose it was a 30-day loan. First, interest/principal : 120/400 = 30% = periodic rate. Second, there are 12 x 30-day periods in a year : period rate * num periods : 12*30% = 360% APR
The key is really the time. How long of a period is the interest covering? The longer the period, the less the rate will be.
