What's the different between interest rate and Apr?

What's the different between interest rate and Apr?

How much total would I pay on a 30k loan, by the end of a 36 month in pic related

I'm 99% sure that if you put that curser of yours over that green (?) it'll fuckin tell you, you retard.
k.y.s

APR - annual percentage rate - the amount of interest applied to the principal on a periodic basis depending on how often it's compounded...

APY - annual percentage yield - the actual amount applied to the principal balance over the course of a year, usually a bit less than APR on loans you're paying regular basis and a bit more when earning interest on deposits.

I did you fucking retard. English not my first language so I don't under it. Go choke on black cock you faggot boy

Holy shit these are awful rates. First one is better by far. like nigga, second has higher intersest rate and you're making twice the payments. First one doesn't rob as much of your money. Dont be a loan slave and pay it off as fast as you humanly possibly can.
source: accounting student, speaking of which my final exam is in 5 days.

Is there penalty for paying it off earlier?

Yeah I'm going the first one. It's a 3 year term whereas the second is a 6 year term that's why it's so much, but still robbing you lol. First is better for sure.

Yeah I'll try not to be a loan slave. This is for a business

In apr....

Figure total years for load into months.

Total of loan by months

(This is principle payment.)

------------------

Interest:

Divide total amount by interest rate (in decimal form) .

(This is apr)
(÷by 12 for monthly)
----------

Add monthly interest and principal for mobthly payment.

3-4% interest means you can figure TWICE wtf the loan cost at the end of payments...

Well you don't give the money back all at once, that'll cost you a fee. If you get all the money back, put it all into a separate account and bill your loan and interest expenses to it. That way you get charged same regular rate but you don't need to worry about missing payments since all the money is already there. These look like blended payments so it looks like the interest charge might be different after every payment every time so keep an eye on how much it is.

Basically this. i was too lazy to type it out so yeah

>3-4% interest means you can figure TWICE wtf the loan cost at the end of payments...
Wrong.

On a $30K loan, you'll make about $32K in payments at a 3-4% interest rate.

The APR refers to the interest rate for the whole year.

Interest rate is applied on a monthly basis to come up with your monthly payment.

there shouldn't really be, but, and this is a pretty big but, most of these loanshark companies charge a hefty sum for instigating your loan, this is what makes up the bulk of the APR on most loans.

but really I would suggest shopping around instead, that interest rate in today's economy is a pretty bad deal.

REEEEEEEE. 3RD TIME RESPOND AND OHONE LOCKS UP. SORRY FOR SHIT SOELLCHECK. FUCKER BLANKS OUT THE TEXT BLOCK

Ah yeah... well fuck me.

OY VEY I'VE BEEEN DISOBERED
MY PLAN HAS FAILED

36k for 4. Fuck me im a tard

Go to a bank for a loan lower payment rates. And if you are not accepted then he reason is they do not think you can afford to pay it back. In which case re think a loan not paying these payday loan sharks and you rack up 100's of times your loan amount in interest and charges

>no down payment!
>no closing costs!

Kek. "NO" fuck off loanshark

I don't understand almost satan.

Are you telling me in america you have to pay monthly fees AND yearly fees? Hot damn that's shitty. Remind me to stay in Canada

This.

Credit Karma is your friend.
Get good credit.
Get real estate loan. Is lowest interest.

...

...

Alright cool thanks bros.

So at the end of the 36 month term I'll pay $35,062.20.

Seems like a good trade off

If you can afford the higher monthly payment, go with that. In the long run it will save you almost $6,900.

I dunno what it's like where you live, but there's no way in hell I'd get offered these interest rates on a loan the equivalent of $30k.

I'd really shop around if I were you, if only to make sure you can't get it much cheaper.

How?

it's probably unsecured, or they already know his credit score and are basing rates on his risk. But yeah, those rates suck.

36 payments at $973.95 = $35,062.20
60 payments at $699.30 = $41,958.00

Difference is whole dollars paid - $6,895.80

Oh shit I read your comment wrong. I thought you said if you can go with the second one. My bad.

Yeah totally the first

I have 770 credit score so that's how they based it. The credit score had a 7 year history. They also used my yearly income... But I only filed taxes once and it a shit number lol. They still accepted. I'll still shop around like others have said.

APR is the only number that matters

Consider a loan with "12% interest" but which you pay interest on every month. There's 12 months in a year, so you pay 1% interest each month.

This means if you started with $10,000 in principle after a single month you now owe $10,100

However after the second month, you pay interest not on the original $10,000 -- but on the total outstanding balance of $10,100. So on the second month your debt rises to $10,201. Note the extra dollar.

Following this pattern, after a full twelve months you'll owe $11,268.25 -- which is 12.68% more than the original $10,000 loan

So by taking advantage of compounding (paying partial interest several times) the APR (annual percentage rate) exceeds the advertised interest rate

If this sounds evil and tricksy, it's because it is. Banks hire mathematicians to come up with bullshit like this that isn't taught in school in order to trick people into paying more in interest than they intend to. One of the more vile of such tactics, used only by real con artists, is charging interest upfront. This leads to higher total interest rates because normally interest is only accrued on REMAINING balance. If charged upfront, the full balance is counted for the entirety of the duration.

If we go back to that $10,000 loan, we just kept tacking on interest but never actually made a PAYMENT. If after one month you paid $1,000 then you'd now only owe $9,100. The next month 1% interest on $9,100 would put you at owing $9,191. Another $1,000 payment puts you at $8,191. As your remaining balance goes down, so does the interest charge.

If anyone EVER tries to charge the full amount of interest upfront, walk away.

I'm a little high atm so I hope I understood your comment correctly, either way thanks for the input,ill keep an eye out

>If this sounds evil and tricksy,
Not really. Posting the APR I think is a federal requirement. It gives a more apples-to-apples comparison.

Another point, along with yours, is the fee aspect. In your $10,000 example, the loan is $10,000 but they may charge a fee of $500 for the loan (application fee, title search, etc...) so you end up with $9,500 but the loan is based on $10,000. This pushes the "interest rate" up to the "APR" rate.

IF my math is correct, they're not being entirely honest with the interest rates that they state.

If you plug values into the equation of value using an interest rate of 10.42% for loan number one, that should actually bring the monthly repayments down to $967.36 per month, making a difference of $6.60. Over the course of the loan, that equates to an additional $237.45.

Similarly, with loan number 2, the equation of value should give a monthly repayment of $686.37, making a difference of $12.93, which would correspond to an additional $775.80 over the course of the loan.

Again, assuming my math is correct, loan number one is actually charging an interest rate closer to 10.93%. I couldn't be bothered to calculate it for the second one, but again, it's probably higher than what they're saying.

my calculations come right out correctly. make sure you use payment at the end of the period.