Im losing money now on my interest from the bank..can I stop it?
Pay back your loans in full.
I have had loans out b4 and this has not happened...whats different? Its only for 100M
Interest income and interest expense are reported on the same line item.
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.
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.
it is the rates. not the fact that I have a loan out. thanks