Trying to figure out an interest rate on this loan

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Reachard

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Indiana
Found out that my son is dealing with a loan shark. He borrowed $10,000 and needs to pay the principal ($10K) plus the interest ($4,000) in 6 months. So, pay back $14k in 6 months. What does that figure out to be as ___% interest rate?

2nd option, pay back $6,000 at 12 months. So, pay back $16,000 in 12 months. What does that figure out to be as ___% interest rate?

I'm trying to make a point with my son. Thanks!

PS, yes, this is a "loan" to pay back a drug dealer who is putting the heat on my son. Yes, we're having some issues in Indiana
 
What "point" are you trying to make? Your son is a MAJOR CRIMINAL. Why haven't you reported him to the police?
 
What "point" are you trying to make? Your son is a MAJOR CRIMINAL. Why haven't you reported him to the police?

Believe me, I have. They sit back and do nothing. Even told them who the dealer is, with address to boot. Zigner, if you'd like to intervene, please contact the police on my beha

I was trying to explain to him how paying back $4k on a $10k "loan" in 6 months is stupid, since he won't listen about drugs and dealing with drug dealers is also stupid.
 
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I was trying to explain to him how paying back $4k on a $10k "loan" in 6 months is stupid, since he won't listen about drugs and dealing with drug dealers is also stupid.
I disagree. Paying an extra $4,000 on a $10k drug debt is very wise when compared to the view from 6 feet under.
 
I disagree. Paying an extra $4,000 on a $10k drug debt is very wise when compared to the view from 6 feet under.

Will you call the police, Zigner? You seem to be a person of much sway. Maybe they'll listen to you and stop this madness. Son has issues now with the drug dealer...what issue will he have with the loan shark in 6 months when he can't pay up? Both are bad burrito's, if you get my drift
 
Will you call the Terre Haute police, Zigner? You seem to be a person of much sway. Maybe they'll listen to you and stop this madness. Angus has issues now with the drug dealer...what issue will he have with the loan shark in 6 months when he can't pay up?
It's not my place to do so. Maybe the better choice on your part would be to remove yourself from the situation. Let your son deal with the consequences of his actions.
 
It's not my place to do so. Maybe the better choice on your part would be to remove yourself from the situation. Let your son deal with the consequences of his actions.

Well, he lives in my basement with his girlfriend and her 4 kids. She does drugs, too. Can't remove myself from my own house, don'tcha' know?!
 
Well, he lives in my basement with his girlfriend and her 4 kids. She does drugs, too. Can't remove myself from my own house, don'tcha' know?!
You're right - you let yourself get in way too deep. Now that the matter is complicated by the Covid-19 virus, your options are very limited. In any case, you really could let your son deal with his own matters, thus "removing yourself" from the situation. Of course, if they burn your house down because sonny hasn't paid his debt, then you're right back in it.

Your quest to prove a point about finances to your son is far too little and far too late.
 
Sorry, but I have to shake my head and the lack of basic math skills evidenced by this post.

He borrowed $10,000 and needs to pay the principal ($10K) plus the interest ($4,000) in 6 months. So, pay back $14k in 6 months. What does that figure out to be as ___% interest rate?

$4,000 on a $10,000 loan is $40%. Since that amount is purportedly due after only six months, it works out to 80% per year.

2nd option, pay back $6,000 at 12 months. So, pay back $16,000 in 12 months. What does that figure out to be as ___% interest rate?

Sigh... $6,000 is 60% of $10,000.

Seems like the lender and your son are both idiots.

yes, this is a "loan" to pay back a drug dealer who is putting the heat on my son.

So...the "lender" is a drug dealer? Or your son borrowed the money from someone in order to pay a debt to a drug dealer?

Well, he lives in my basement with his girlfriend and her 4 kids. She does drugs, too. Can't remove myself from my own house, don'tcha' know?!

No, but you CAN evict them so that, when someone comes after your son with guns, you don't get caught in the crossfire..
 
No, but you CAN evict them so that, when someone comes after your son with guns, you don't get caught in the crossfire..
Indiana currently has a moratorium on residential evictions. Of course, there are likely exceptions that may apply, but I think the OP is more interested in proving a point than in actually evicting.
 
Ok, dimwits, let me explain: my son smokes a bit o' weed. A dealer made him a pact - will give you free weed, but you act as middleman and sell some for me. In exchange for the free dope, you repay me or the weed that you sell.

Well, Son was selling the weed, but spending the money and not repaying it. his dealer, was angry and made threats. Son did the loan with the loan shark to repay. Eventually, everybody will want to be repaid, too.

Get it? Do you comprendi?
 
Ok, dimwits, let me explain: my son Angus smokes a bit o' weed. A dealer made him a pact - will give you free weed, but you act as middleman and sell some for me. In exchange for the free dope, you repay me or the weed that you sell.

Well, Angus was selling the weed, but spending the money and not repaying it. Jesus Martino, his dealer, was angry and made threats. Angus did the loan with Johnson Jamison, the loan shark to repay Jesus Martino. Eventually, Johnson Jamison will want to be repaid, too.

Get it? Do you comprendi?
I think we all get it. Best of luck to you.
 
Reachard, I've edited out all the identifying information and I'm locking the thread since we can't be of any help to you..
 
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