Good morning!
i wondered if anyone would help me work something out.
We need to pay an upfront fee of £12,918. If we paid upfront, we would save 2%.
However, in order to pay this upfront, we would need to borrow the money.
the money would have otherwise been in a savings account, earning 5% interest
The money would be paid back over 12 months, in 12 equal payments
Can someone help me work out how much interest the person lending the money would loose, considering after every month they would replace 1/12th of the sum.
it’s not a question of if it’s worth it to pay up front and borrow, it’s just trying to work out how much interest they would lose so we could cover that.