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Law Capping interest rates
Rank: Elder Joined: 12/25/2014 Posts: 2,301 Location: kenya
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Swenani wrote:@Kaigangio  Let me first correct your calculations, at the end of one year based on your calculations, you would have borrowed kshs 86 481(7206*12) and repaid kshs 90,000(7500*12) Please go to the nearest mirror near you, look straight in the mirror and ask yourself this question loudly Quote:Can KCB loan me 86,481 per year at an interest of 4% ? If you are satisfied that you are still paying an interest rate of 4% p.a come back here and post more, otherwise smash your head into that damn mirror That kaingagio guy is right . His Calc is right to the point
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Rank: Elder Joined: 2/27/2007 Posts: 2,768
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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Take this two scenerios 1. Guy Y's A pocket lends 86,480 pocket B, for whih pocket B will be charged say 4% p.a on the principal amount(86,480) to move money back to pocket A, Every month he takes 7206 from has pocket B and tops up 294 to pocket A, at the end of the year, Pocket A will have 90,0000 and he will have topped up 3,520(294*12) 2. Guy X's A pocket on the other hand lends pocket B 7,206 charges 4% p.m to move the money back to pocket A.He does the following every month i) At the end of the month, he moves 7206 from pocket B and tops up 294 to pocket A ii) at the beginning of every month,pocket A will again lend pocket B 7206. Question 1: How much has Guy X handled in one year including interest in both pockets A and B? A: 7,500 B: 90,000 C. 10,734 D. 86,480 E. Nilisomea kwa dirisha Question 2: How much interest has Guy's X pocket B paid to pocket A in a year A.294 B. 3,528 C. Nilisomea kwa dirisha Question 3: What is the annual interest rate charged by guy's x pocket A to pocket B? A. 4% B. 48% C. Nilisomea kwa dirisha In the above scenerio, replace pocket A with KCB and pocket B with wanjiku If Obiero did it, Who Am I?
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Rank: Member Joined: 10/6/2009 Posts: 587
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Swenani wrote:Take this two scenerios 1. Guy Y's A pocket lends 86,480 pocket B, for whih pocket B will be charged say 4% p.a on the principal amount(86,480) to move money back to pocket A, Every month he takes 7206 from has pocket B and tops up 294 to pocket A, at the end of the year, Pocket A will have 90,0000 and he will have topped up 3,520(294*12) 2. Guy X's A pocket on the other hand lends pocket B 7,206 charges 4% p.m to move the money back to pocket A.He does the following every month i) At the end of the month, he moves 7206 from pocket B and tops up 294 to pocket A ii) at the beginning of every month,pocket A will again lend pocket B 7206. Question 1: How much has Guy X handled in one year including interest in both pockets A and B? A: 7,500 B: 90,000 C. 10,734 D. 86,480 E. Nilisomea kwa dirisha Question 2: How much interest has Guy's X pocket B paid to pocket A in a year A.294 B. 3,528 C. Nilisomea kwa dirisha Question 3: What is the annual interest rate charged by guy's x pocket A to pocket B? A. 4% B. 48% C. Nilisomea kwa dirisha In the above scenerio, replace pocket A with KCB and pocket B with wanjiku I may not be so much of a mathematician but Kaigangio's calculations are convincing and logical. @Swenani, You seem to be asuming that @Kaigangio is not trading with the 7206/= once he/she receives it, which is obviously wrong.
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Rank: Elder Joined: 7/22/2009 Posts: 7,910
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Kaigangio wrote:@ maichblack @swenani etal I am in KCB Mpesa territories. Today is 3rd October 2016 and this is what I will do starting tomorrow for a small project at hand whose actual construction commencement is about 16 months away. 1. On 4th October 2016, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 which I will buy 250 pieces of 9" x 9" machine dressed stones. I repay kshs 7500.00 on or before 31st October 2016. 2. On 4th November 2016, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 30th November 2016. 3. On 4th December 2016, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 31st December 2016. 4. On 4th January 2017, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 31st January 2017. 5. On 4th February 2017 I, will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 28th February 2017. 6. On 4th March 2017, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 31st March 2017. 7. On 4th April 2017, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 30th April 2017. 8. On 4th May 2017, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 31st May 2017. 9. On 4th June 2017, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 30th June 2017. 10. On 4th July 2017, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 31st July 2017. 11. On 4th August 2017, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 31st August 2017. 12. On 4th September 2017, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 30th September 2017. On 4th October 2017, I will add up all the money that will have been credited into my account and compare it with kshs 86,481.00. I will also add up the repayments and confirm if I will have paid up kshs 90,000.00 in total including the interests. As of now being Wanjiku I will not be interested in borrowing a lumpsum of kshs 90,000.00 because the banks will not lend me and even if they got touched and gave me the money, after one year I will have paid back kshs 103,050.00 or somewhere thereabout.  Where will you be getting 7,500/= from every month to pay the loan??? Every month you will have to look for 7,500/= to repay your loan!!! Every month!!! Why look for 7,500/= every end month so that you can borrow 7,200/= 4 days later. The bank is only returning your money less 300/=!!! If you can get 7,500/= from elsewhere EVERY MONTH, why not use it on your project??? You will actually have more money to complete your project!!! But knock yourself out! I am invested in both Banks and Safaricom so more money for money for me!Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 10/3/2008 Posts: 4,058 Location: Gwitu
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Baratang wrote:Swenani wrote:Take this two scenerios 1. Guy Y's A pocket lends 86,480 pocket B, for whih pocket B will be charged say 4% p.a on the principal amount(86,480) to move money back to pocket A, Every month he takes 7206 from has pocket B and tops up 294 to pocket A, at the end of the year, Pocket A will have 90,0000 and he will have topped up 3,520(294*12) 2. Guy X's A pocket on the other hand lends pocket B 7,206 charges 4% p.m to move the money back to pocket A.He does the following every month i) At the end of the month, he moves 7206 from pocket B and tops up 294 to pocket A ii) at the beginning of every month,pocket A will again lend pocket B 7206. Question 1: How much has Guy X handled in one year including interest in both pockets A and B? A: 7,500 B: 90,000 C. 10,734 D. 86,480 E. Nilisomea kwa dirisha Question 2: How much interest has Guy's X pocket B paid to pocket A in a year A.294 B. 3,528 C. Nilisomea kwa dirisha Question 3: What is the annual interest rate charged by guy's x pocket A to pocket B? A. 4% B. 48% C. Nilisomea kwa dirisha In the above scenerio, replace pocket A with KCB and pocket B with wanjiku I may not be so much of a mathematician but Kaigangio's calculations are convincing and logical. @Swenani, You seem to be asuming that @Kaigangio is not trading with the 7206/= once he/she receives it, which is obviously wrong. You are the one assuming that he is trading.Gizzard says he is buying stones!Clearly he is getting the money to pay from other sources which makes me wonder why he needs the loan. This loan can work for hawkers and Mama Mbogas but someone building a house! Truth forever on the scaffold
Wrong forever on the throne
(James Russell Rowell)
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Rank: Elder Joined: 7/22/2009 Posts: 7,910
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Rank: Elder Joined: 7/22/2009 Posts: 7,910
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Swenani wrote:Take this two scenerios 1. Guy Y's A pocket lends 86,480 pocket B, for whih pocket B will be charged say 4% p.a on the principal amount(86,480) to move money back to pocket A, Every month he takes 7206 from has pocket B and tops up 294 to pocket A, at the end of the year, Pocket A will have 90,0000 and he will have topped up 3,520(294*12) 2. Guy X's A pocket on the other hand lends pocket B 7,206 charges 4% p.m to move the money back to pocket A.He does the following every month i) At the end of the month, he moves 7206 from pocket B and tops up 294 to pocket A ii) at the beginning of every month,pocket A will again lend pocket B 7206. Question 1: How much has Guy X handled in one year including interest in both pockets A and B? A: 7,500 B: 90,000 C. 10,734 D. 86,480 E. Nilisomea kwa dirisha
Question 2: How much interest has Guy's X pocket B paid to pocket A in a year A.294 B. 3,528 C. Nilisomea kwa dirisha Question 3: What is the annual interest rate charged by guy's x pocket A to pocket B? A. 4% B. 48% C. Nilisomea kwa dirisha In the above scenerio, replace pocket A with KCB and pocket B with wanjiku Haki @Swenani I am suing you!!! #BrokenRibs Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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Baratang wrote:Swenani wrote:Take this two scenerios 1. Guy Y's A pocket lends 86,480 pocket B, for whih pocket B will be charged say 4% p.a on the principal amount(86,480) to move money back to pocket A, Every month he takes 7206 from has pocket B and tops up 294 to pocket A, at the end of the year, Pocket A will have 90,0000 and he will have topped up 3,520(294*12) 2. Guy X's A pocket on the other hand lends pocket B 7,206 charges 4% p.m to move the money back to pocket A.He does the following every month i) At the end of the month, he moves 7206 from pocket B and tops up 294 to pocket A ii) at the beginning of every month,pocket A will again lend pocket B 7206. Question 1: How much has Guy X handled in one year including interest in both pockets A and B? A: 7,500 B: 90,000 C. 10,734 D. 86,480 E. Nilisomea kwa dirisha Question 2: How much interest has Guy's X pocket B paid to pocket A in a year A.294 B. 3,528 C. Nilisomea kwa dirisha Question 3: What is the annual interest rate charged by guy's x pocket A to pocket B? A. 4% B. 48% C. Nilisomea kwa dirisha In the above scenerio, replace pocket A with KCB and pocket B with wanjiku I may not be so much of a mathematician but Kaigangio's calculations are convincing and logical. @Swenani, You seem to be asuming that @Kaigangio is not trading with the 7206/= once he/she receives it, which is obviously wrong. Do not mix issues, whether he trade or not, the interest paid and the rate applied remains the same... We are not look at his net worth or income, we are simply looking at the interest paid If Obiero did it, Who Am I?
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Rank: Elder Joined: 12/25/2014 Posts: 2,301 Location: kenya
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Swenani wrote:Baratang wrote:Swenani wrote:Take this two scenerios 1. Guy Y's A pocket lends 86,480 pocket B, for whih pocket B will be charged say 4% p.a on the principal amount(86,480) to move money back to pocket A, Every month he takes 7206 from has pocket B and tops up 294 to pocket A, at the end of the year, Pocket A will have 90,0000 and he will have topped up 3,520(294*12) 2. Guy X's A pocket on the other hand lends pocket B 7,206 charges 4% p.m to move the money back to pocket A.He does the following every month i) At the end of the month, he moves 7206 from pocket B and tops up 294 to pocket A ii) at the beginning of every month,pocket A will again lend pocket B 7206. Question 1: How much has Guy X handled in one year including interest in both pockets A and B? A: 7,500 B: 90,000 C. 10,734 D. 86,480 E. Nilisomea kwa dirisha Question 2: How much interest has Guy's X pocket B paid to pocket A in a year A.294 B. 3,528 C. Nilisomea kwa dirisha Question 3: What is the annual interest rate charged by guy's x pocket A to pocket B? A. 4% B. 48% C. Nilisomea kwa dirisha In the above scenerio, replace pocket A with KCB and pocket B with wanjiku I may not be so much of a mathematician but Kaigangio's calculations are convincing and logical. @Swenani, You seem to be asuming that @Kaigangio is not trading with the 7206/= once he/she receives it, which is obviously wrong. Do not mix issues, whether he trade or not, the interest paid and the rate applied remains the same... We are not look at his net worth or income, we are simply looking at the interest paid In my own way it's the same as bank gives you 7500 in January and tells you keep that money till December and bring it back the 7500. But meanwhile be paying only 294 every month. At the end of the day you would pay interest of 294x12= 3528 which is 48% interest rate. I could be wrong though
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