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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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My daughter has been offered a loan from her solicitor to cover

Resolved Question:

My daughter has been offered a loan from her solicitor to cover the costs of disbursements going forward throughout the case which could last for 2 years (or less)
It is 4% on a daily basis. (he has mentioned 25p a day) if the payments are as follows what would she pay in interest at the end please, because we do not understand '' on a daily basis '' although he has tried to explain we would rather have your opinion. thank you.
Hypothetical example:
Amounts: £3000 now then £4000 in 3 months total now £7000 then £3000 in 6 months total now £10000 and then 5000 in 1 year total now £15000 and duration 19 months
Thank you
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Hello my name is ***** ***** I will help you.
What is it you would like to know about this please?
Customer: replied 2 years ago.

My daughter has been offered a loan from her solicitor to cover the costs of disbursements going forward throughout the case which could last for 2 years (or less)
It is 4% on a daily basis. (he has mentioned 25p a day) if the payments are as follows what would she pay in interest at the end please, because we do not understand '' on a daily basis '' although he has tried to explain we would rather have your opinion. thank you.
Hypothetical example:
Amounts: £3000 now then £4000 in 3 months total now £7000 then £3000 in 6 months total now £10000 and then 5000 in 1 year total now £15000 and duration 19 months

Thank you

Expert:  Ash replied 2 years ago.
Yes I understand thank you, ***** ***** is it you want to ask about this?
Customer: replied 2 years ago.

In the example what is the interest she would pay over term i have given to give some idea whether it is a good proposal from her solicitor.

Expert:  Ash replied 2 years ago.
You need to work out whether 4% is simple or compound interest. For each £1000 that has been loaned interest would be 11p per day. That is how I have worked out the interest and that is on a simple basis, not compound.
Can I clarify anything for you about this today please?
Alex
Ash and other Law Specialists are ready to help you
Expert:  Ash replied 2 years ago.
Hi

I am just following up to see if there is anything else I can help with?

If you have not done so already might I ask you to rate my answer before you go today please, the button should be at the bottom of the screen.

If you need more help please click reply.

Alex