how much interest would i have earned?

studentdiver

I had £10,000 that I lent to a friend in June 2003. They now want to pay me back plus the interest. If I had invested it then, how much would my £10,000 be worth now?

Sagz_2

I think that depends where you had invested it.....

caveat_emptor

Go to http://www.bankofengland.co.uk/mfsd/iadb/Repo.asp to see what the interest rate has been over the period.

opinions4u

studentdiver wrote: »

I had £10,000 that I lent to a friend in June 2003. They now want to pay me back plus the interest. If I had invested it then, how much would my £10,000 be worth now?

I'd estimate that you would have been able to get an average rate of around 5% pa over that time - possibly slightly higher if you'd tied the money up in Iceland etc!

Compounding that sort of rate works out at around £3,000 in interest. If you are a taxpayer, deduct 20% = £2,400.

All very approximate.

masonic

If you really mean "invest" then it could be worth less today than it was in 2003!

If you mean how much interest could you have earned in a savings account, then perhaps you are looking at an average rate of about 5% per year, which would compound up to approx 30% over that timeframe.

Edit: Looks like great minds think alike

Aegis

About £12740 total amount if you just assume a constant compounded interest rate of 4.5% per year. So £10k original capital and £2740 interest.

If you want to raise or lower the interest rate, then it's fairly easy to recalculate.

Trying_to_be_good

Any interest you receive should be declared to the Revenue and is taxable at the highest rate you pay tax (20 % or 40%), so bear that in mind.

studentdiver

Thankyou very much to everyone who posted a reply to my request for advice. You have all been very helpful.
What a great forum!:T