Interest costs on £1000 loan

steve700

Hi everyone,

I wish to borrow £1000 from my Dad for a period of about 5 weeks (35 days), rather than going through the trauma of a bank loan (which I may not even be able to get for 1 month).

I recently reduced my overdraft from £800 to £200 and don't believe, though I will try, that they will raise it back up again so quickly.

Can anyone tell me what the interest would be on £1000 for 35 days?

My Dad is more likely to help me if he knows that I'm willing to pay the going rate..... (although I don't think that he'll actually take the interest off me, which would be a bonus!!)

Thanks

Steve

mjdh1957

Hi Steve,

Assuming 6% interest, then the figures woud be as follows

£1000 @ 6% per annum = £60

pro rata for 35 days = 35/365 x £60 = £5.75

So for your loan from your dad, you would pay back £1005.75

Hope that helps.