The loan amount would be $10K and repayment would begin 6 months after graduation or half-time schooling. How do I calculate the interest rate?
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You have to determine the interest rate, how many months to allow for payoff, and frequency of payments.
Set up columns like below (excel handles this wonderfully if you have):
DATE BAL INTER INTER PAYMENT
&nbs
p; RATE AMT
Date is date of entry/payment
BAL - Starting at amount owed (assumed no interest until payments start)
Interest- for example 4%
Interest Amount- if monthly payments, [Balx .04] divided by 12 (months)
Payment-agreed upon payment per month
Deduct payment from balance in second column and that amount becomes the new balance on the second line, second column
Will you allow two or three payments (early payoff)
I am not an accountant but this will work I believe.
answered 5 months ago
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I think it would be easier to try debt counseling help to assist you in setting up some sort of option for him to pay.
answered 5 months ago
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