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Have i got my loan repayment calculations correct? watch

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    Right guys,

    Can i just ask if you could check over my maths...i know it's very basic, but i just want to check.

    My loan currently stands at £10,000 (Originally 9k but has raised due to interest)

    So - i'm earning £21k

    21,000 - 15,000 = £6,000

    9% of 6,000 = £540 (i pay per year) - £45 per month

    10,000 / 540 = 3.42% (of my loan i am paying back)

    Now the interest on the loans currently is as follows:

    From 6 March 2009, the interest rate on Income Based Loans is 1.5%
    The interest rate from 6 February 2009 to 5 March 2009 was 2%.
    The interest rate from 9 January 2009 to 5 February 2009 was 2.5%
    The interest rate from 4 December 2008 to 8 January 2009 was 3%
    The interest rate from 1 September 2008 to 4 December 2008 was 3.8%

    So, if we're currently at a very low 1.5% - i am reducing my total amount by:
    3.42 - 1.5 = 1.92% per year

    And with the older rates (3.8%) i was actually paying less than my interest was adding on? Is that correct? :eek: :confused:
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    Yes, that's correct.

    Use this tool to help you work out tax and such:
    http://www.moneysavingexpert.com/tax-calculator/

    That's how I worked out your £45 repayment.
 
 
 

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