Loan interest

[springydaff]

How much interest on a loan from 15 years ago?

I borrowed £2000 and would like to pay it back with interest but have no idea how to work it out. Anyone know how to do it?

Yes I'm a dunce but TIA

It's an easy calculation - what is the interest rate?

It was a private loan between 2 individuals. What interest would you suggest?

Are you saying that you borrowed £2k and haven't paid anything back until now? It's not that straightforward, depending on what you want to achieve.

If you had taken out a commercial loan 15 years ago with an agreement to pay back over x years, there would have been a fixed interest rate, with payments based on the amount being paid back over time, with a reducing balance to charge interest on. The interest rate would have depended on the term, your credit rating, all sorts. But it would have unlikely to have run this long - £2k is a fairly small amount to borrow, so the term would have been a max of around 3-5 years, but the interest rate could have been anything.

If you want to compensate the person you borrowed the money off for lost savings interest, for the last 10 years, they would have earned 1-2% pa at best and before that, maybe a maximum of 5-7% pa.

£2000 in a savings account with interest compounded over 15 years at an average interest rate of 4% would work out at about £3600 now, or at 2% about £2700.

Have a play with:

www.thisismoney.co.uk/money/saving/article-1633419/Monthly-lump-sum-savings-calculator.html

Thanks Barbara 👍