Quote:
Originally Posted by pagan8c
they show the flat rate as 3.04% but the annual percentage rate is 5.9% which I think is charged monthly or even daily .I am not sure how they work percentage rates out but I think the figures are right as per Volvo quote but you need a mathematician to work it out or a programme which works out the figures which is probably what Volvo have. We need a banker to do the figures I just pay the monthly figure as I am sure they have to give these quotes in accordance with some regulations.
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Your right about Apr is is virtually impossible to work out but in loan agreement it says Apr is for comparrison only and loan is based on flat rate figure, which is easy to work out as interest is charged on the whole loan amount over the period of agreement which is why normally a flat rate shows lower than Apr as Apr takes into account payments made