Just Making Sure I Understand AW Credit

No one is clear on that because it is not written on the website. Call the sales rep and ask them, verbatim, what you posted.

-Craig

Heh... 21.9% Annual Percentage Rate. I wonder what that means... let's assume for the heck of it, that it means monthly!

If it works the way most credit cards do, they won't charge you interest for the first whatever period (6 months), but the calculations for the interest afterwards, assuming you haven't paid the full ammount by 6 months' end, will be based on what it would have been, had they been charging full interest for all those 6 months.

The interest also compounds, meaning that whatever interest they earn off you each month, gets included in the total amount you owe them, and so the next month, they earn interest off the interest they earned last month!!

Total Paid = Original Amount x (1 + 0.22)^# periods

Total Paid = $3323 x (1.22)^12 <--- 12 months you say?
Total Paid = $36,128.37

Thirty six thousand dollars. I'm not pulling these numbers out of my ass!

On a calculator, go (3323 x 1.22), twelve times. ^^

Check out the small print at the bottom of their credit page, they say something about interest being calculated right up to the time of purchase if you dont' pay within 6 months...

This is only assuming that it's monthly.. I have no idea what "annual percentage rate" is supposed to mean, so yeah. lolz

Sneaky aliens...

Angellepnaii, seriously though, you need to phone Alienware and ask them how often the interest compounds. You don't want to get screwed up the ass; the fact that your $3323 could potentially turn into $36,128.37 isn't as ridiculous as you'd think ><

Oh my...I see no one here took any finance classes in college. Storm, APR is "ANNUAL" percentage rate. So in order to use your formula you need to divide 22% by 12 to find out what r (the rate) is. The formula (1+r)^t is wrong because it doesn't reduce the principle amount by your payments, so if you use that formula, you calculate interest on $3,323 even at the end of the loan.

Secondly, the interest only compounds on the amount of the loan that you have left. This is exactly what a mortgage or car loan does. Each payment that you make (assuming that you can't pay it off in 6 months) is made up of two parts. One part is used to pay off your original loan amount, while the other is to pay off some of the interest that you owe. Go find a loan calculator online and put in the information to see how much you really would pay. (go to just about any bank website and they have them)

I put in a 3500 loan for one year (12 payments) at 22% (rip off rates) and got a monthly payment of about $328. The extra interest on this loan is $431. The total you would pay is 3931.

Now, if you could pay this off within the 6 months, it would simply be 3500/6 payments = 583.00 each month but you pay no extra interest.

Smiley is 100% correct.

What we do not know is what they consider to be the "Principal" if you have not paid down the entire balance. Many times retail credit programs retro back to the initial principal regardless of what you have paid off after the initial grace period.

Bottom line...no one here knows for sure. Call Alienware.

-Craig

Here's a calculator from my bank's website, if you guys wanted to put in different numbers

http://www.ifcu.com/ifcumain.htm

here's your answer, guys/girls. As it says below, finance charges accrue from the date of purchase, unless you pay it off in 6 months.

I better be, seeing that I'm an accountant and all. Accounting major and finance minor in college.

Bank Loan!

knew i could not pay this off in 6 months so I went with a small computer loan from my local bank. I get 7% intrest and i can keep up with how much i owe my going to their online banking site. So i can use my laptop to pay for my laptop! I think I can getthis paid off in 1 year but i got a 2 year loan It makes for about A 138$ payment a month for the 2 years! If you can't pay it off in that 6 month time period i think thisis the way to go!

angel discover cc is offer 12 month no interest