4 ms·

You can call it "zero interest" if you want, but, if you're paying back 150% of principal over 5 years, that's a 19% APY. https://www.calculator.net/loan-calcu

• culi 5y ago
  To clarify, you can either pay the principal amount (e.g. 20k) or use the ISA which maxes out at 150% of the principle amount. By "zero interest" I just mean it's a fixed amount that won't ever change. This might seem like a frivolous distinction, but it means that you'll never have to worry about getting trapped paying just the interest so I think it makes a big difference
• deleted 5y ago
  [deleted]
• ummonk 5y ago
  It’s not helpful to calculate APY that way. After all, if they had made the maximum repayment period 50 years instead of 5 years that would result in a lower APY according to your calculation. In reality the APY will be heavily dependent and on your income (as a high income will result in repayment period less than 5 years, while a low income will result in only partial repayment by the end of the 5 years).