Loan help-Cant get figures to add up

[JamesNotJim]

As the title says really. Anyone one help me to get my head around some figures I've been given.

I already have a loan, thats no problem. I'm looking to top it up.

I've got £2702.96 left to pay from my old loan.
I want to borrow another £7500
The new interest rate on the loan would be 7.52%
so with my simple maths.. £2702.96 + £7500= £10202.96 plus the interest which I work out as £744.81 giving me a total of £10947.77
This is where I get confused..

The length of the loan would be 48 months with monthly payments of £244.. which doesn't add up to my simple maths above...48 x £244= £11712

Anyone help me with something I'm missing please?

[okgo]

Settlement on your current loan is higher due to there being interest and or and early repayment penalty?

[chard]

Thats about right your confusing APR with Flat rate (the flat rate will be approx 3.75%)

So your interest will be loan amount x 3.75% p.a. (approx) x4 (because it's a 4 year loan)

[sidicks]

chard said:

Thats about right your confusing APR with Flat rate (the flat rate will be approx 3.75%)

So your interest will be loan amount x 3.75% p.a. (approx) x4 (because it's a 4 year loan)

£10,202.96 at 7.52% APR over 4 years would be a monthly premium of around £245.62

Total paid back is £11,789.53

So interest paid of £1,586.57 (compared with £1,530.44 under the simple approximation referred to above).


Sidicks