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Trying to figure out an interest rate on this loan

Discussion in 'Business & Corporate Matters' started by Reachard, Mar 25, 2020.

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  1. Reachard

    Reachard Law Topic Starter New Member

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    Jurisdiction:
    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
     
  2. PayrollHRGuy

    PayrollHRGuy Well-Known Member

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    The six-month loan is 80% APR.
    The 12 month is 60%.
     
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  3. Zigner

    Zigner Well-Known Member

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    What "point" are you trying to make? Your son is a MAJOR CRIMINAL. Why haven't you reported him to the police?
     
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  4. Reachard

    Reachard Law Topic Starter New Member

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    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.
     
    Last edited: Mar 25, 2020
  5. Zigner

    Zigner Well-Known Member

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    I disagree. Paying an extra $4,000 on a $10k drug debt is very wise when compared to the view from 6 feet under.
     
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  6. Reachard

    Reachard Law Topic Starter New Member

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    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
     
  7. Zigner

    Zigner Well-Known Member

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    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.
     
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  8. Reachard

    Reachard Law Topic Starter New Member

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    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?!
     
  9. Zigner

    Zigner Well-Known Member

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    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.
     
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  10. zddoodah

    zddoodah Well-Known Member

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    Sorry, but I have to shake my head and the lack of basic math skills evidenced by this post.

    $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.

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

    Seems like the lender and your son are both idiots.

    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?

    No, but you CAN evict them so that, when someone comes after your son with guns, you don't get caught in the crossfire..
     
  11. Zigner

    Zigner Well-Known Member

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    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.
     
  12. Reachard

    Reachard Law Topic Starter New Member

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    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?
     
  13. Zigner

    Zigner Well-Known Member

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    I think we all get it. Best of luck to you.
     
  14. adjusterjack

    adjusterjack Super Moderator

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    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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