#ppi calculation ...help please

[royalscot]

Hi guys can anyone help please , dont know how to calculate PPI interest on loans .LOAN 1 £10,000 .....PPI £2376.93.......22nd march 2006 to 21st sept 2010 ......6.26% per annum interestLOAN 2 £7,500......PPI £2399..67 .......2nd aug 2008 to 9 sept 2010 ........9.47% per annum interestLOAN 3 £ 1,500 ....PPI ££212.44 .........26th april 2002 to 19th sept 2002........16.62% per annim interestThank you rs

[royalscot]

Can anyone tell me why my post isnt uniformed ....think ive press something ??rs

[LateDeveloper]

I did write it all out for you, but the post went invisible for some reason.

 

What is the repayment period charge. ie what charge over how many installments ?

[LateDeveloper]

Try again for a rough calculation take the interest charged and divide by the amount borrowed.

 

To calculate the actual interest then it depends on how they have applied the charge.

 

Depends on wether they charge the interest annually, monthly or daily and at what frequency the reduce the debt.

Below is an annual interest rate charged annually.

 

example would be 10,000 reducing by 2500 per year.

interest on the first year would be (10000 x 1.0626) - 10,000 = A

interest on the second year would be (7500 x 1.0626) - 7500 = B

and so on, for C and D

Add A + B + C + D together. Now add this to the amount borrowed, then divide this into equal parts for the repayment.

 

The figure 1.0626 is the interest rate in decimal form, which is interest 6.26% divided by 100, + 1

Edited April 28, 2011 by LateDeveloper
Explanation of calculation used.

[royalscot]

Try again for a rough calculation take the interest charged and divide by the amount borrowed.

 

To calculate the actual interest then it depends on how they have applied the charge.

 

Depends on wether they charge the interest annually, monthly or daily and at what frequency the reduce the debt.

Below is an annual interest rate charged annually.

 

example would be 10,000 reducing by 2500 per year.

interest on the first year would be (10000 x 1.0626) - 10,000 = A

interest on the second year would be (7500 x 1.0626) - 7500 = B

and so on, for C and D

Add A + B + C + D together. Now add this to the amount borrowed, then divide this into equal parts for the repayment.

 

The figure 1.0626 is the interest rate in decimal form, which is interest 6.26% divided by 100, + 1

 

Thanks LD , but still confused , are you able to calculate a rebate amout if claim is successfull ?cheers rs

[royalscot]

Any help please

[LateDeveloper]

Sorry been away

 

If you are making a claim for PPI, then the total amount of PPI should be readily available from the lender. It all depends on how they have calculated the PPI.

For instance, if they have added interest onto the loan, then calculated the PPI on the Loan + Interest as a percentage, it would come to a greater amount than if they had just calculated the PPI on the loan before interest.

They should give you all these payments in detail, showing the loan amouts, loan interest, and PPI payments made/to be made itemised. They may well have even given you an interest rate on the loan of 5% then added a PPI of 1.26% on top, making the total interest 6.26%.

You need to check your original loan agreement for how the calculations have been done.