Hello everyone. I am new to manager and I am having some problems. I’m gonna explain my business in a nutshell and hopefully you guys can help me.
My business: I lend money to people and charge a daily interest on it. Let’s say you are my customer and I gave you 5000 bucks. I will charge a daily interest of 18% on it. For example, you have it for 215 days, the total amount you have to pay me will be, according to simple interest, 5000*(18/100)*(215/360) = 537.5
But there’s another thing. Suppose you only have 2000 at this time and you pay it to me. I will not subtract the 2000 from 5000, but instead, I will add interest on these 2000 bucks. So these 2 will go as 2 separate values. So at one hand I’m adding interest to the 5000 I gave you, and on the other hand, you are adding interest on the 2000 you gave me.
It’s kinda hard to understand but if you got it, please help me. Thanks!