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10-12-2007, 06:25 AM
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Discount loan
For example I need $ 10 000. The bank will give me discount loan with 17% annual rate, for 1 year, with 1 payment at the end of the period. Number of periods are equal to 1, number of years are equal to 1 also. Please, help me, and advice, how it is calculated that I have to apply for $12 050 in order to get $10 002 loan, and the rate will be $ 2 049. How I should calculate these $ 12 050?
The effective annual intrest rate is 20.48%. Please advice how it is calculated. Thank you in advance, Silvia 
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10-12-2007, 03:45 PM
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I fail to see the discount with this loan.
On another note. The APR could be at 17% and the actual APY could be at 20.48%, there is a difference. If I were you, I would stay away from this loan and any loan above 10% in today's interest market.
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