Math question related to interest (1 Viewer)

[Zeppelin]

Person A owes person B $2600 from 14 years ago and I'm trying to calculate what it would be if there was interest accruing. Use 10% for the calculation and please explain if you don't mind so I can recalculate once I get the actual interest rate I will be using.

Thanks in advance.

 

[-OZ-]

Person A owes person B $2600 from 14 years ago and I'm trying to calculate what it would be if there was interest accruing. Use 10% for the calculation and please explain if you don't mind so I can recalculate once I get the actual interest rate I will be using.

Thanks in advance.

https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator

$10,253 if compounded annually.

Pretty sure it’s just $2600 * (1.10)^14

 

[Don Quixote]

Zero dollars due, likely.

 

[The Z Machine]

Zero dollars due, likely.

Yup, that's the most likely sum to bring paid.

 

[Don Quixote]

Zero dollars due, likely.

Yup, that's the most likely sum to bring paid.

Yeah - OP needs to do some statute of limitations math.

 

[zamboni]

Even though you planted this here, there are plenty of web pages that can do this for you, Zep.

 

[Juxtatarot]

Person A owes person B $2600 from 14 years ago and I'm trying to calculate what it would be if there was interest accruing. Use 10% for the calculation and please explain if you don't mind so I can recalculate once I get the actual interest rate I will be using.

Thanks in advance.

https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator

$10,253 if compounded annually.

Pretty sure it’s just $2600 * (1.10)^14

Loan interest doesn’t typically compound. It’s just 2600 * .10 * 14.

 

[zamboni]

Person A owes person B $2600 from 14 years ago and I'm trying to calculate what it would be if there was interest accruing. Use 10% for the calculation and please explain if you don't mind so I can recalculate once I get the actual interest rate I will be using.

Thanks in advance.

https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator

$10,253 if compounded annually.

Pretty sure it’s just $2600 * (1.10)^14

Loan interest doesn’t typically compound. It’s just 2600 * .10 * 14.

Depends on the loan terms whether it’s simple or compounded interest.

 

[Juxtatarot]

Even though you planted this here, there are plenty of web pages that can do this for you, Zep.

Well, most of them are amortizing payments.

 

[Juxtatarot]

Person A owes person B $2600 from 14 years ago and I'm trying to calculate what it would be if there was interest accruing. Use 10% for the calculation and please explain if you don't mind so I can recalculate once I get the actual interest rate I will be using.

Thanks in advance.

https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator

$10,253 if compounded annually.

Pretty sure it’s just $2600 * (1.10)^14

Loan interest doesn’t typically compound. It’s just 2600 * .10 * 14.

Depends on the loan terms whether it’s simple or compounded interest.

That why I wrote “typically”.

 

[brun]

I don't think it matters. Pretty sure it was a gift, not a loan.

 

[nysfl2]

10% interest rate? What kind of loan shark are you?

Gonna have to break some kneecaps.

 

[johnnycakes]

You can get a HP12C financial calculator app for your iPhone. Mine says $9,873.50.

 

[popeye]

loansharkguys.com is available FWIW

 

[-OZ-]

Person A owes person B $2600 from 14 years ago and I'm trying to calculate what it would be if there was interest accruing. Use 10% for the calculation and please explain if you don't mind so I can recalculate once I get the actual interest rate I will be using.

Thanks in advance.

https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator

$10,253 if compounded annually.

Pretty sure it’s just $2600 * (1.10)^14

Loan interest doesn’t typically compound. It’s just 2600 * .10 * 14.

Interesting.

Pretty sure if I took a loan from my credit card that will compound. Horrendously.

Honestly, I haven’t taken a loan other than mortgage in over 20 years so

 

[Stoneworker]

The most common method used for personal loans is the simple interest method, also known as the U.S. Rule method.

The U.S. Rule produces no compounding of interest in that any unpaid accrued interest is accumulated separately and is not added to principal. In addition, under the U.S. Rule, no interest calculation is made until a payment is received.

Sources: Investopedia, Consumer Financial Protection Bureau

 

[Leroy Hoard]

$10,253 if compounded annually.

Pretty sure it’s just $2600 * (1.10)^14

Now I wish I lent $2600 to a bunch of people 14 years ago.

 

[belljr]

Vig is usually weekly

 

[Leroy Hoard]

Vig is usually weekly

Pay it and 2 weeks from now you still have both knees.

 

[johnnycakes]

Vig is usually weekly

Pay it and 2 weeks from now you still have both knees.

The Sopranos - Furio's first Job

Scene from:Season 2 Episode 5 "Big Girls Don't Cry"

www.youtube.com

 

[pecorino]

As mentioned, 10% is a high rate. However, it’s quite convenient for using the rule of 70 which states that the amount due will double roughly every 7 years. (Take 70 divided by the rate to get 7). And so in 14 years, that is two doublings. $2600 * 2 * 2 = $10,400. No apps needed.

 

[dino259]

As mentioned, 10% is a high rate. However, it’s quite convenient for using the rule of 70 which states that the amount due will double roughly every 7 years. (Take 70 divided by the rate to get 7). And so in 14 years, that is two doublings. $2600 * 2 * 2 = $10,400. No apps needed.

Rule of 72

 

[belljr]

i dont believe the rule of 72 - my money has not doubled every 7 years.....

 

[pecorino]

As mentioned, 10% is a high rate. However, it’s quite convenient for using the rule of 70 which states that the amount due will double roughly every 7 years. (Take 70 divided by the rate to get 7). And so in 14 years, that is two doublings. $2600 * 2 * 2 = $10,400. No apps needed.

Rule of 72

It is alternately dubbed the Rule of 72, the Rule of 70, or the Rule of 69.3. I went with the one with the simplest math. It's just an estimate anyway.

 

[pecorino]

i dont believe the rule of 72 - my money has not doubled every 7 years.....

You're clearly not earning 10%.