2006-09-20 10:46:36 · 11 answers · asked by Jaymie 1 in Business & Finance ➔ Personal Finance
1000. and be happy about it you are lucky 1997?
2006-09-20 10:49:36 · answer #1 · answered by lona b 3 · 0⤊ 0⤋
You should not only count inflation, but interest as well. Depending on how good a "friend" he is, you could charge anywhere from zero percent, all the way to what is legally allowed in your area. Go to a good finance website and use the future value equasion. Put in the original 1,000 at year zero, and an interest rate, and the number of years it took (assuming annual compounding). It should give you a present value to determine how much you should ask for payment from your friend.
2006-09-20 17:50:29 · answer #2 · answered by Texas M.B.A. 2 · 0⤊ 0⤋
I am not aware of the pound rate of inflation, but the formula goes like this:
initial rate x year 1 inflation rate then add the two # together = A
A x year 2 inflation rate etc.
2006-09-20 18:44:14 · answer #3 · answered by Joe Cool 6 · 0⤊ 0⤋
If the loan was to a good friend, and no terms were mentioned, then the honorable thing is to just expect your money back. Nothing more.
If it was done on a business basis, then you would be entitled to expect interest at the low side of commercial loan rates, say 7-8%
2006-09-20 18:22:50 · answer #4 · answered by Anonymous · 0⤊ 0⤋
depends on what interest rate you want. if you just want inflation back and it averaged about 5%, then to get the original buying power of your money back it's 1000 x (1.05 ^ 9) or £1551
2006-09-20 19:20:00 · answer #5 · answered by larry n 4 · 0⤊ 0⤋
I think I would be satisfied with the original amount unless this friend has the cash. If a friend of mine was in need, and I loaned him some money intrest would not have entered my mine.
2006-09-20 17:53:51 · answer #6 · answered by virginiamayoaunt 4 · 0⤊ 0⤋
You should just take your money and be thankful you got it back. If I had a loan out that long I would have already kissed it good by, so anything I would have gotten back would have been a surprise.
2006-09-20 17:51:38 · answer #7 · answered by stephenl1950 6 · 0⤊ 0⤋
Did you agree on charging interest? If it wasn't in the original agreement - he owes you 1000 pounds. If you agreed on interest - todays prime is about 6% if you didn't agree on an interest rate at the time of lending.
2006-09-20 17:56:54 · answer #8 · answered by snowy 3 · 0⤊ 0⤋
8% compound per annum
just leave it a level £2,000
you will be fine
2006-09-20 17:49:16 · answer #9 · answered by Anonymous · 0⤊ 0⤋
go by standard APR rate from the bank.
2006-09-20 17:48:51 · answer #10 · answered by fayem7 5 · 0⤊ 0⤋