The loan has not been paid on time.
And I want to show the borrower how much compounded interst they have cost me by not paying on time
2007-03-09 16:25:33 · 2 answers · asked by Rob 1 in Business & Finance ➔ Personal Finance
Amount = Priniciple * Rate ^ Time
Your rate should be equal to the expected rate of return you would have otherwise received from that loan as a lender or investor based on other similar loans and investments. Otherwise, rate should equal the prime rate (federal reserve interest rate as defined for loans) which is currently 8.25%.
2007-03-11 09:10:12 · answer #1 · answered by Mikey C 5 · 0⤊ 0⤋
They haven't cost you anything; the interest has been compounding and now they have to pay you more. If you borrowed the money for someone else and haven't recieved their money in order to pay a loan in your name, then you're an idiot for lending them money you didn't have.
2007-03-10 00:31:59 · answer #2 · answered by normobrian 6 · 0⤊ 0⤋