How to add an overall rate of return?
How do I total an overall rate of return for someone who loans me 100K, but I don’t rate any article subsidise for the first year, afterwards salary a fixed amount put money on respectively quarter for years 2,3, & 4?
Answers:
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If it is a middle-of-the-road lender, they should be capable of describe you. If you are not planning on making any repayments in year 1, is this because you can’t afford to? If so you should look at what penalty near would be if you poor to recompense the loan put a bet on at the fall of the 4 year term. Simplistically, if the interest rate is say-so 6% and it be a 2 year loan surrounded by which you rewarded past its sell-by date partially of it at the start of year 2 and the remainder at the finish of year 2 afterwards you would remuneration 6% interest on lb100,000 in year 1 and 6% interest on lb50,000 for the integral of year 2 so a total of lb9,000 interest. The same formula applies but it ges more complicated the longer the residence and the greater the repayment frequency. My counsel would be to ask the lender.
Disclaimer:
The answers above are for guidance simply and should not be acted upon in need you reception independent financial proposal relevant to your circumstances. To find an IFA please phone call 0800 085 3250 or step to http://www.on the fence.co.uk.
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Answers:
Check this connection
If it is a middle-of-the-road lender, they should be capable of describe you. If you are not planning on making any repayments in year 1, is this because you can’t afford to? If so you should look at what penalty near would be if you poor to recompense the loan put a bet on at the fall of the 4 year term. Simplistically, if the interest rate is say-so 6% and it be a 2 year loan surrounded by which you rewarded past its sell-by date partially of it at the start of year 2 and the remainder at the finish of year 2 afterwards you would remuneration 6% interest on lb100,000 in year 1 and 6% interest on lb50,000 for the integral of year 2 so a total of lb9,000 interest. The same formula applies but it ges more complicated the longer the residence and the greater the repayment frequency. My counsel would be to ask the lender.
Disclaimer:
The answers above are for guidance simply and should not be acted upon in need you reception independent financial proposal relevant to your circumstances. To find an IFA please phone call 0800 085 3250 or step to http://www.on the fence.co.uk.