Sunday, September 23, 2012

Interest rate on installment plan

Courts advertised their regular sales. They show the cash price and the installment play for many products. Do you know the interest rate charged on the installment plan? It is 46% per annum. The calculation is shown here. http://tankinlian.com/admin/file.aspx?id=683&IID=687
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1 comment:

Jeremy Ow said...

This is rather alarming paying 46% annual interest rate for making a hire purchase. This annual interest rate is higher than that charged by credit cards at about 24% per annum. I thought that borrowing from credit cards is already damaging to one's finances needing to pay such a high rate of interest. Imagine making a hire purchase at even higher annual interest rate at 46% is really alarming. One really need to consider carefully whether taking up installment plans at such alarmingly high annual interest rate make sense or not?

September 24, 2012 12:34 PM

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