Interest on a loan.

tarren

Hi,
I intend lending a family member £29500 repayable at £1000 per calander month. We have agreed that some sort of interest should be payable in order to reimburse me some of my lost interest, and I suggested 3%.

I wonder if some kind soul would work out how much interest would be payable over the 29 months it will take to repay the original sum, or point me in the right direction. The interest will be added on at the end of the 29 months.

Thank You.
jon.

ajb69

A quick Google for "loan interest calculator" brings up this:

http://www.thisismoney.co.uk/loan-repayments-calculator

Plugging in £29,500 @ 3% over 29 months brings up a total charge for credit (i.e. the interest payable) of £1,119.14.

This of course assumes that you want the interest compounded over the life of the loan. If you just want to charge simple interest, then 3% of £29,500 is £885.

Cheers

d

tarren

Thank you ajb, I'd worked out the simple percentage over the 2 years, but thought that with it reducing each month perhaps it might have worked out cheaper recalculating the reducing sum over the period.

Perhaps I'm complicating it a bit too much.

Thanks again.