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### Author Topic: interest  (Read 422 times)

#### tdf42

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• Posts: 106
##### interest
« on: June 30, 2015, 02:54:21 AM »
Im losing money now on my interest from the bank..can I stop it?

#### schro

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##### Re: interest
« Reply #1 on: June 30, 2015, 02:57:52 AM »
Pay back your loans in full.

#### tdf42

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• Posts: 106
##### Re: interest
« Reply #2 on: June 30, 2015, 07:03:07 AM »
I have had loans out b4 and this has not happened...whats different? Its only for 100M

#### schro

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##### Re: interest
« Reply #3 on: June 30, 2015, 12:09:28 PM »
Interest income and interest expense are reported on the same line item.

#### tdf42

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• Posts: 106
##### Re: interest
« Reply #4 on: June 30, 2015, 07:27:53 PM »
That does not explain to me why it is happening. Last year I was receiving 600K a week and now am paying. Thanks for your trying to help.
« Last Edit: July 01, 2015, 05:44:51 AM by tdf42 »

#### schro

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The 3 people who like this post:
##### Re: interest
« Reply #5 on: June 30, 2015, 07:42:16 PM »
Ok. Looking at your airline in GW1, I see you have ~1.4b in cash and .12b in loans right now. Two quarters ago, you had 1.2b in cash and .02b in loans.

Today's interest rates are 7.21% on loans and .21% on cash in bank. Let's do some math:

A. Interest paid to you = 1.4b * (.0021/52) = \$56538
B. Interest paid to bank = .12b * (.0721/52) = \$166384
A minus B means you should be seeing about a negative 110k on your interest line item to the bank.

Now, let's back up a bit to a couple quarters ago where interest rates were 10% for loans and 3% for savings:

A. Interest paid to you = 1.2b * (.03/52) = \$692307
B. Interest paid to bank = .02b * (.10/52) = \$38461
A minus B means you should be seeing about a positive 650k on your interest line item to the bank.

So, going back to my first post, you "fix" it by paying off your loans.

#### tdf42

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• Posts: 106
##### Re: interest
« Reply #6 on: July 01, 2015, 05:42:25 AM »
it is the rates. not the fact that I have a loan out. thanks
« Last Edit: July 01, 2015, 05:46:52 AM by tdf42 »

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