vmail
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Post by vmail on Mar 27, 2017 23:46:50 GMT
Has anyone else noticed that interest is rounded to 2 decimal points and the extras bits is being kept by MT? Is this normal practice? Or have I messed up somewhere?
Loan Part Start End Days Calc. Interest Interest Paid by MT
£70.00 02/03/2017 25/03/2017 23 £0.529315068 £0.53
£7.00 25/02/2017 25/03/2017 28 £0.064438356 £0.06
£196.00 25/02/2017 25/03/2017 28 £1.804273973 £1.80
£96.00 25/02/2017 25/03/2017 28 £0.883726027 £0.88
Total £3.281753425 £3.27
All loans are 12%
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Post by trentenders on Mar 28, 2017 4:52:36 GMT
Go to a petrol station. They often give away pennies.
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jonah
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Post by jonah on Mar 28, 2017 4:59:52 GMT
vmail your top example is rounded up I note. I suspect that given that, that MT is probably playing fair and 'rounding to the nearest penny' not 'rounding down'.
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Post by GSV3MIaC on Mar 28, 2017 7:58:55 GMT
I'd rather have fairly rounded than AC's femtopence, thanks!!
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woodie
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Post by woodie on Mar 28, 2017 8:20:54 GMT
0.529 = 0.53
0.064 = 0.06
1.804= 1.80
0.883 = 0.88
What's wrong with that ?
It's a new £1 coin that's being introduced today, not a 1/10p coin.
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Post by markp2p on Mar 28, 2017 9:22:14 GMT
If they round to the nearest penny on a 'per slice' basis, you can get 12% on a 10% loan by dividing your investment into £1 slices, each of which will have its interest rounded up to 1p at the end of the month. So I suggest they stop doing that if they are.
It would be trivial to program a bot to buy 1,000 £1 slices instead of a £1,000 slice.
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am
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Post by am on Mar 28, 2017 10:08:08 GMT
If they round to the nearest penny on a 'per slice' basis, you can get 12% on a 10% loan by dividing your investment into £1 slices, each of which will have its interest rounded up to 1p at the end of the month. So I suggest they stop doing that if they are. It would be trivial to program a bot to buy 1,000 £1 slices instead of a £1,000 slice. Isn't there a limit on the number (as well as the value) of purchases in the initial 24 hour period?
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Post by markp2p on Mar 28, 2017 10:11:43 GMT
No idea. In any event the current 10.5% loan is outside the initial 24-hr period so if interest is calculated in the way suggested in this thread, someone could buy £240k worth of loan at an effective 12% (if they wanted to).
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n
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Yet another Nick
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Post by n on Mar 28, 2017 11:46:24 GMT
Isn't gaming against the T&Cs?
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Post by GSV3MIaC on Mar 28, 2017 13:43:57 GMT
Besides which, it would be unwise to assume the rounding engine has no ability to remember what happened the previous month, or what it did to you on other loan parts.
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Post by marcusponds on Mar 28, 2017 16:14:37 GMT
dont we have anything better to worry about? Trump is still president you know...
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DeafEater
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Extremely Moderate
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Post by DeafEater on Mar 30, 2017 18:51:54 GMT
MoneyThing do round interest repayments to 2 DPs but it's perfectly fair. £9.9952 of interest becomes £10 and £9.9949 becomes £9.99. You win some you lose some. As long as you understand the rounding you can calculate exactly how much interest you're due in advance and they're very rarely wrong. When I originally wrote my interest calculation I assumed that when MT quoted an interest rate of 12%, that was an AER and because interest was paid monthly, I should calculate my daily interest based on an annual rate of 11.38655. However they don't, they just do a simple division of 12% by 365 to get the daily rate and use that to calculate the interest for however many days there were in that month.
There are plenty of other platforms that quote very misleading interest rates so I find MT's approach rather refreshing.
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GeorgeT
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Post by GeorgeT on Mar 30, 2017 20:25:35 GMT
MT is the king of Fair Practice and good practice and that is why the New Kid On The Block (MT) has stormed past much longer running and older and bigger platforms to get FCA full authorisation ahead of the rest.
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Post by bracknellboy on Mar 30, 2017 21:07:21 GMT
MoneyThing do round interest repayments to 2 DPs but it's perfectly fair. ... There are plenty of other platforms that quote very misleading interest rates so I find MT's approach rather refreshing. Yeah, but they are still doing that damn rounding. Why on earth can I not have individual transactions reconcilable to 20 dps ? If that is not done I am clearly losing: over time the aggregation of transactions could leave me 'in pocket': rounding up/down to the precision allowed by physically tradeable coinage is so 'last year.' :-0
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Mar 31, 2017 0:00:13 GMT
MT is the king of Fair Practice and good practice and that is why the New Kid On The Block (MT) has stormed past much longer running and older and bigger platforms to get FCA full authorisation ahead of the rest. Difficult to storm past people when you started in front of them  (application window 6 months earlier than most of the big boys and even more than the platform formerly known as SS)
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