2007-06-06 08:42:53 · 7 answers · asked by vivalabamtv3 1 in Business & Finance ➔ Personal Finance
depends on the rate of interest you plan to charge and how long it takes them to pay you back
2007-06-06 08:50:23 · answer #1 · answered by CupCake 5 · 0⤊ 0⤋
$5. multiplied by the interest rate - say 8% - divided by 365 days in the year - multiplied by the number of days they had the money.
$5x8% = .40 so 40 cents to borrow the money for a whole year - that comes to .0001096 per day - doesn't seem worth it to even charge them interest. In some states there are not usery laws so paycheck advance stores and pawn shops can charge ANYTHING they want - 106% or 600%.
2007-06-06 15:49:33 · answer #2 · answered by justwondering 6 · 0⤊ 1⤋
Hi,
You take 5 dollars, and multiply by the interest rate in decimal format. Meaning if you charge 10%, you multiply 5 x 0.10, which equals $0.50 of interest. However, interest calculates for the whole year, so you then have to divide by 365 days in a year to figure out the daily interest rate. That equals 0.14 cents per day. You then multiply that number by the number of days it takes them to pay it back. If you lend them money on June 1st, and they pay you back on June 30th, they owe you 4 cents of interest. Total is $5.04. This is how a bank would charge you interest. I work for a bank.
2007-06-06 15:49:27 · answer #3 · answered by Bob Smith 5 · 0⤊ 2⤋
Depends on how long they had the money, and of course the interest rate. If you charged 10% interest and they didn't pay you back for a year, you'd get $5.50 back at the end of the year.
2007-06-06 15:55:36 · answer #4 · answered by Judy 7 · 0⤊ 1⤋
You have not supplied enough information to answer the question.
fee = flat dollar amount
interest = growth rate
to know how much the total growth in debt is with an interest rate you need to know principal, interest rate (% per time), and time.
2007-06-06 15:52:13 · answer #5 · answered by Curly 6 · 0⤊ 1⤋
You gave someone $5, how much interest did you two agree'd on?
If it was for example 5% interest. then you'll muliply $5 by 5% and add your answer to the $5.
$5*5% = $.25
5+.25= $5.25
They'll owe you $5.25.
Hope this helps.
2007-06-06 15:48:05 · answer #6 · answered by decoyname4t 2 · 0⤊ 2⤋
it depends on how much interest you want to add.. if you want 5% interest it would be 5.25$... 10% would be 5.50$....15% would be 5.75$.... 20% would be 6.00$... 25% would be 6.25$... 30% would be 6.50$
2007-06-06 15:53:41 · answer #7 · answered by Anonymous · 0⤊ 0⤋