interest

[tdf42]

Im losing money now on my interest from the bank..can I stop it?

[schro]

Pay back your loans in full.

[tdf42]

I have had loans out b4 and this has not happened...whats different? Its only for 100M

[schro]

Interest income and interest expense are reported on the same line item.

[tdf42]

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.

[schro]

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]

 it is the rates. not the fact that I have a loan out. thanks