aju
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Post by aju on Jun 17, 2019 14:36:51 GMT
I lent out 170.34 into Rolling yesterday and the schedule says
So my question is why am I only going to get 82p on a 6% loan for a year or is it just that the system is a bit slow in creating the real payments schedule.
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Post by Deleted on Jun 17, 2019 14:48:08 GMT
I think it's the interest until the next repayment date.
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aju
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Post by aju on Jun 17, 2019 14:59:13 GMT
I think it's the interest until the next repayment date. I know what you mean - as I said i'm guessing that RS has quite some backlogs in relevant processes as this is the first and only loan I've seen like this. That said I would have thought that the process that generates the payments schedule would have been coupled together for all payments. This my first experience of hte newer rolling product since I started on RS back in november when Mrs Aju had some rolling due to the £50 she got for inviting me in. I'm sure it will catch up sometime soon as things on a sunday and monday do seem to have some delays on them. I wonder how long this high rate will last ( I haven;t checked today) Thx
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sl75
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Post by sl75 on Jun 17, 2019 15:15:38 GMT
I lent out 170.34 into Rolling yesterday and the schedule says So my question is why am I only going to get 82p on a 6% loan for a year or is it just that the system is a bit slow in creating the real payments schedule. Where do you get "a year" from?
Today is 17/06/2019, and your schedule shows full repayment on 17/07/2019 which is exactly 1 month away.
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Stonk
Stonking
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Post by Stonk on Jun 17, 2019 15:32:36 GMT
The repayment schedule on a Rolling loan tells you the next payment only. The schedule also suggests you are going to get the principal back too after a month, which you are not because it will be forcibly re-lent to the same borrower. This display problem is because RS haven't properly implemented the change from the Old Days when you really did get the full loan back every month.
More importantly , however did they arrive at 82p interest? £170.34 at 6% for 31 days should be at least 86p! I cannot arrive at 82p no matter how I calculate it.
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aju
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Post by aju on Jun 17, 2019 16:40:58 GMT
I lent out 170.34 into Rolling yesterday and the schedule says So my question is why am I only going to get 82p on a 6% loan for a year or is it just that the system is a bit slow in creating the real payments schedule. Where do you get "a year" from?
Today is 17/06/2019, and your schedule shows full repayment on 17/07/2019 which is exactly 1 month away.
Thx @sl15, I must admit I hadn't noticed the date was a month ahead and at the time I did not know what I do now, thanks to Stonk above telling me the answer I was after. Since we removed Mrs Aju's £50 immediately we could and poked it into 5Y I had not seen how things work in the rolling.
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aju
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Post by aju on Jun 17, 2019 16:50:58 GMT
The repayment schedule on a Rolling loan tells you the next payment only. The schedule also suggests you are going to get the principal back too after a month, which you are not because it will be forcibly re-lent to the same borrower. This display problem is because RS haven't properly implemented the change from the Old Days when you really did get the full loan back every month.
More importantly , however did they arrive at 82p interest? £170.34 at 6% for 31 days should be at least 86p! I cannot arrive at 82p no matter how I calculate it. Thx for the insightful answer that explains it. I got 83.8p as June only has 30 days but either way its a bit out 83p. (=174.34*6%/365*30) I'm sure some maths boffin will be along soon to correct us ... RS have probably gained some s/w engineers from Zopa then, smacks of Agile Management where designs seems to get dealt with at the end and no time for docs etc ...
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Post by propman on Jun 17, 2019 16:58:08 GMT
Looks right to me. if you decompound, interest rate for the 30 days is (1+6%)^(30/365)-1.
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aju
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Post by aju on Jun 17, 2019 17:14:17 GMT
Looks right to me. if you decompound, interest rate for the 30 days is (1+6%)^(30/365)-1.
There you go, we both forgot about the compounding of 30 days,
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Stonk
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Post by Stonk on Jun 17, 2019 17:32:10 GMT
I did try various ways of decompounding, and still couldn't get it!
It's 31 days, not 30. The loan was made yesterday, so it's 16 June to 17 July.
170.34 x ( 1.06 ^ (31/365) - 1 ) is 84.5p
or, on the grounds that the present year of the loan will include a 29 February :
170.34 x (1.06 ^ (31/366) - 1 ) is 84.3p
The closest I can get is to decompound to a monthly interest rate and use that every month irrespective of length :
170.34 x (1.06 ^ (1/12) - 1 ) is 82.9p ... which maybe RS rounded down.
Just my 2 pence worth.
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Greenwood2
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Post by Greenwood2 on Jun 17, 2019 17:40:30 GMT
I did try various ways of decompounding, and still couldn't get it!
It's 31 days, not 30. The loan was made yesterday, so it's 16 June to 17 July.
170.34 x ( 1.06 ^ (31/365) - 1 ) is 84.5p
or, on the grounds that the present year of the loan will include a 29 February :
170.34 x (1.06 ^ (31/366) - 1 ) is 84.3p
The closest I can get is to decompound to a monthly interest rate and use that every month irrespective of length :
170.34 x (1.06 ^ (1/12) - 1 ) is 82.9p ... which maybe RS rounded down.
Just my 2 pence worth.
Is this just posts and panels, there are 30 days in June?
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Stonk
Stonking
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Post by Stonk on Jun 17, 2019 17:48:08 GMT
Is this just posts and panels, there are 30 days in June?
16 June to 17 June = 1 day of interest
16 June to 18 June = 2 days of interest 16 June to 19 June = 3 days of interest ...
16 June to 29 June = 13 days of interest 16 June to 30 June = 14 days of interest 16 June to 1 July = 15 days of interest 16 June to 2 July = 16 days of interest ... 16 June to 12 July = 26 days of interest 16 June to 13 July = 27 days of interest 16 June to 14 July = 28 days of interest 16 June to 15 July = 29 days of interest 16 June to 16 July = 30 days of interest 16 June to 17 July = 31 days of interest
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aju
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Post by aju on Jun 17, 2019 17:48:43 GMT
and I thought maths was just an exact science - that's what my secondary maths teacher used to say!
Oh BTW the contract date says it started on the 17th not the 16th....
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Stonk
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Post by Stonk on Jun 17, 2019 17:59:50 GMT
Oh BTW the contract date says it started on the 17th not the 16th....
Isn't that a bit cheeky? Lending out your cash one day and then saying the loan starts the next day?
It does make the calculation work, though, as per propman :
170.34 x ( 1.06 ^ (30/365) - 1 ) is 81.8p
Phew!
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Greenwood2
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Post by Greenwood2 on Jun 17, 2019 19:44:54 GMT
Oh BTW the contract date says it started on the 17th not the 16th....
Isn't that a bit cheeky? Lending out your cash one day and then saying the loan starts the next day?
It does make the calculation work, though, as per propman :
170.34 x ( 1.06 ^ (30/365) - 1 ) is 81.8p
Phew!
I guess at best it would be a half day on the first day probably transactions happen at midnight.
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