If I keep lending my money....

V

v2_vehooi

New Member
#1
#1
Hi dude, I've one question regarding the loan formula. Assumming at first I lend 100 @ 4%pa. the calculation at flat rate and the tenure is 1 year, 12 payment which mean every month, the borrower will pay me.

0 month = 100 out
1 month
|
|
12 months = I will receive 8.6667 per month.

Then once I received the 8.6667, I keep continue lending out and get 4%pa flat rate, tenure 12 months. I keep lend at this situation.
May I know is there any formula to calculate this ?
If anyone know it, appreciate that you can share out. Thanks. :)
 
N

nikrod

Active Member
#2
#2
v2_vehooi said:
Hi dude, I've one question regarding the loan formula. Assumming at first I lend 100 @ 4%pa. the calculation at flat rate and the tenure is 1 year, 12 payment which mean every month, the borrower will pay me.

0 month = 100 out
1 month
|
|
12 months = I will receive 8.6667 per month.

Then once I received the 8.6667, I keep continue lending out and get 4%pa flat rate, tenure 12 months. I keep lend at this situation.
May I know is there any formula to calculate this ?
If anyone know it, appreciate that you can share out. Thanks. :)
Click to expand...
The general formula for compounding is

Total = Principle * (1 + (Rate of Interest / 100))^No of Years

In Your Case it would be

Total = 100 * (1.04^No of Years)
 
Capricorn

Capricorn

Well-Known Member
#3
#3
v2_vehooi said:
Hi dude, I've one question regarding the loan formula. Assumming at first I lend 100 @ 4%pa. the calculation at flat rate and the tenure is 1 year, 12 payment which mean every month, the borrower will pay me.

0 month = 100 out
1 month
|
|
12 months = I will receive 8.6667 per month.

Then once I received the 8.6667, I keep continue lending out and get 4%pa flat rate, tenure 12 months. I keep lend at this situation.
May I know is there any formula to calculate this ?
If anyone know it, appreciate that you can share out. Thanks. :)
Click to expand...
What's your collateral????
 
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