Hi there
*Warning - Newbie, so potentially stupid question*
De-lurking to post a question:
I've taken a look at the ptsb, tesco.ie and other loan providers and it's obviously not a question of applying the APR to the loan to calculate the cost of finance, so what am I missing? I assume it's some sort of compounding effect, but would really appreciate if someone could explain, so I sound more knowledgeable when speaking to the bank.
I want to borrow €10k and repay over 36 months. At 7.5%, the total cost of finance should be €750, therefore repayments €298. I'm being quoted €311 p.m., so total cost of finance is €1,160 - why is this?
When I called the Tesco loan centre for an explanation I got the "I can only tell you what's on the screen in front of me" response.