All Questions
Tagged with loans interest-rate
84
questions
16
votes
10
answers
9k
views
Fair interest rate on $2k personal loan to a friend
A friend wanted to borrow $2,000 from me and he promised that he would pay it back in a month. I'm about to lend him the money. How much interest should I charge that would be fair? I am not expert ...
- 161
1
vote
1
answer
79
views
Confusion with payment calculation for fixed payments on fixed interest loan
I'm trying to understand how to calculate the monthly payments on a fixed interest loan with a given term. I understand this can be done with the PMT excel function.
Whenever I see this explained ...
- 13
0
votes
1
answer
69
views
Loan: calculate number of monthly payments with fixed annual interest, fixed montly payment, and 1 additional payment per year
The situation is the following. Consider a loan of 430,000 units (dollars or whatever).
The client will pay 10,000 units per month.
The client will pay an additional 70,000 units every 12th month of ...
- 111
14
votes
3
answers
7k
views
Which mortgage should I pay off first? Same interest rate and mortgage length
tl;dr:
I have two amortized mortgages; one big and one small.
The conditions (interest rate and mortgage length) are exactly the same.
Which should I pay off first?
I have always heard that you ...
- 143
7
votes
4
answers
3k
views
How to compare loan interest rate to savings account interest rate?
I don't understand how to compare my loan's interest rate to my savings account interest rate.
My savings account states:
The Interest Rate on your account is 4.0249% with an Annual Percentage Yield ...
- 173
8
votes
7
answers
6k
views
When is it worth taking out a loan for something I could pay in cash?
I'm trying to better understand the time-value of money and how to compare interest rates vs. investment returns.
In general, if I can pay for something in cash or short-term credit (paid off monthly),...
- 287
18
votes
5
answers
8k
views
I have to pay back my student loan. When is the best time to do it?
Today, I received the news that my "Payback phase" for my student loan has begun. I was afraid this day would come soon, but it came quicker than I anticipated. However, I got the news that ...
- 313
21
votes
9
answers
6k
views
What would be a recommended interest rate for an unsecured loan to individuals with mediocre credit rating and income close to expenses?
I have a friend whose new wife is paying an absurdly high interest rate on her auto loan. They've asked if I was willing to loan them money at a more reasonable rate to pay off that loan and have ...
- 1,206
1
vote
5
answers
952
views
What’s the real benefit of taking loan when interest rate is lower than inflation
This question is particularly regarding taking out a loan for a specific purpose, let’s say buying a car.
I understand that when taking out a loan when inflation is high and interest rates are low you ...
- 111
1
vote
2
answers
145
views
Is this a weekly compounding loan amortization schedule?
I am currently having a disagreement with my colleagues regarding whether a loan is compounding or not.
I have linked below an image of a amortization schedule for a 52 week term for a $50,000 loan. ...
3
votes
1
answer
565
views
Effective interest rate of two loans
Let's say I have two loans and want to calculate the "effective" interest rate. To make things easy let's assume they have the same principal and the same terms (30 years), just two ...
- 7,914
0
votes
1
answer
148
views
Why do business loan interest rates vary that much?
this might be a very basic and stupid question, but I've just recently started considering bank loans for my business (Covid...) and I have no experience with this world whatsoever.
I've noticed that ...
-1
votes
2
answers
883
views
What formula would I use to calculate the percent of an APR if I knew the payment, principal, and interest?
I'm writing a blog article about potential scenarios in which I might lend someone money and explain how interests work. In my example, I am lending someone $400 and agreed to pay back $100. With no ...
- 282
16
votes
9
answers
9k
views
Is my back-of-the-envelope calculation about taking out a loan to invest into the markets flawed?
With the recent economic struggles due to the Covid-19 pandemic the stock market seems to be even more interesting for personal investments. Taking out a loan might be one of the ways to gather or ...
- 263
0
votes
0
answers
28
views
Choosing between a deep discount bond and a loan with variable interest rate
I was wondering what kind of a method should be used to choose between a deep discount bond and a loan with variable interest. Since one option has a fixed rate, and the other has a variable interest ...
- 125