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adamd-mod, Moderator
Category: Microsoft
Satisfied Customers: 9
Experience:  Moderator
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HelloOn a yearly basis:I need to take out a sum (x) out

Customer Question

On a yearly basis:
I need to take out a sum (x) out of a bank to pay for school fees of £10,000. In a year’ time I need to give the same amount back to the bank plus interest. I can lend out the money (x) to a bridging firm that will give me a higher return then what I am borrowing at.
Therefore if the bank charge 6% (i) pa I need to know how much to borrow, (x), and what interest rate I need to get from the bridging firm (b) to repay the loan and interest payments for a year?
i.e. If I borrowed £180,000, (x) @ 6%, (i) and the bridging firm gave me 12%, (b), this would cover the £10,000 school fees plus the interest charged @ 6% and give me a surplus of £285 at the end of the year…but that’s guessing (x) and (b) and I need a formula.
Thank you
Submitted: 1 year ago.
Category: Microsoft
Expert:  Richard replied 1 year ago.
Hi there and welcomeJust reading through this, you ask I need to know how much to borrow, (x), and what interest rate I need to get from the bridging firm (b) to repay the loan and interest payments for a year?Would you not just need from the bridging firm the same interest rat as the bank in order to meet the load repayment? Irrespective of how much is lent?
Customer: replied 1 year ago.
No as the percentage from the bridging loan needs to be enough to pay the £10,000 AND the interest payments to the bank. Please look at the example as to how much I need to borrow roughly to make this work. Thank you
Expert:  Richard replied 1 year ago.
yes, this is what I am sayingIf you borrow from the bank 10,000 @ 6%Then if you lend this to the bridging company @ 6%You get the same from the bridging company as you are paying to the bankYou receive $600 from Bridging company and you will need to pay the bank $600
Customer: replied 1 year ago.
No please look at the example. I want to borrow enough money from the bank to pay the interest rate and the £10,000.
Your example would mean I still owe £10,000 at the end of the year.
Expert:  Richard replied 1 year ago.
ok I see now, you want to pay both off with the intrest from the bridging companyLet me think this through for the formula
Customer: replied 1 year ago.
Thank you that's great. As this is being set up in a codicil the spreadsheet will only to have two input puts, the school fees and the interest rate from the bank, and two outputs which would be how much to borrow and what the interest rate needs to be from the bridging loan company. Thanks
Expert:  Richard replied 1 year ago.
ok, tried to think it through but could not come up with the formula. The only thing I can think of is that it would need to be 100% interest as this would then cover it, which is not what you want.I see what your trying to achieve but cannot come up with it, Perhaps this question is also better suited to a maths expert, not an excel one.I will opt out for another expert that may have new ideas
Expert:  adamd-mod replied 1 year ago.
Hello there,
I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.
I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.
Please note, I am just a moderator for this category, I can only try and find experts to help, I can't answer the question itself.
Thank you!
Customer: replied 1 year ago.
HelloIt looks like my question will not be answered. I've actually ended up paying twice for this service as the first time I went through the procedure my screen froze and as I never received an email from you I thought the payment did not go through. I was also supposed to be on a FREE 30 day trail but I've just seen money for the trail has also been taken out of my account. Therefore £13x2 and £21x2 = £68 has been taken out of my account for an answer I did not receive. I am disappointed to say the least. Please can you refund me all the money and stop my FREE 30 day trail. If I have another question I will start the process again. Many thanks Adam