# APR calculation

Motor insurance premium of £163.20 per year payable in full or by 1 x £ 42.64 and 10 x £20.13.....total £243.94.
Seems an exorbitant amount of interest?
So don't take their credit.
What APR do they quote?
That was my question (although I made a mess of it).....there wasn't an APR quoted that I could see?
But £80 on a £160 loan over a year is going to put it into three figure s I'd imagine.
There has to be, by law.
A tidge under 50% at a first glance, but it's not that simple.
You aren't borrowing £163.20 for a year. If you were, you'd pay nothing until the end of the year, then pay £163.20 plus the £80.74 interest.
You're paying £42.64 up-front, then borrowing the remainder - which you're repaying over the next 11 months, £20.13 payment each month from the end of the first month. So you're not borrowing anything past 11 months, and you're not borrowing the first £42.64 at all. So the actual APR is a big chunk higher than 50% - but, of course, the original comment applies. There's no legal maximum on the APR - so, if you don't like it, don't take that credit.
Having a quick google for an insurance premium APR calculator doesn't give anything that'll give an exact answer - but paying £20.13 monthly would give just over 95% APR, just a couple of quid shy of your total figure. Your example would be higher, because it has a much lower outstanding balance, due to the larger initial payment moving the last payment to the start.
Next *ten* intervals. The OP didn't say what the interval was, so it is impossible to calculate the exact APR.
wrote:
Take the £42.64 off the £163.20 which means the loan is £120.56 The plug the numers into this site