If paid-in-full today August 2006, what should be the total amount due
 including a reasonable interest rate on four hundred dollars loaned
to a family member in August 1979 in which there was no written
agreement?

Hello portacoeli-ga,

I created an excel spreadsheet application to calculate the interest for you.

Using federal reserve rates, and assuming August 1, 1979 the amount
would be $3,506.43.

Federal reserve rates are usually unavailable to consumers and a 3%
addition to the federal reserve rate would be a possible rate someone
might have borrowed money at. In this case, the amount would be
$9,426.73.

Someone with poor credit would have had an even higher interest rate.
If you want me to calculate a higher interest rate, please let me know
and I will do so for you. A credit card, for example, could have a
rate of 19.99% yearly.

Data below lists the federal reserve calculation first, and then the
+3% calculation rate.


FEDERAL RESERVE RATE CALCULATION:
Date	Days	Interest	Amount
1972-08-01		5.25	$500.00
1972-08-29	28	5.50	$502.01
1972-10-03	35	5.75	$504.66
1972-12-27	85	6.00	$511.42
1973-02-27	62	6.25	$516.63
1973-03-26	27	6.50	$519.02
1973-04-19	24	6.75	$521.24
1973-05-07	18	7.00	$522.97
1973-05-25	18	7.25	$524.78
1973-06-07	13	7.50	$526.13
1973-06-22	15	7.75	$527.76
1973-07-02	10	8.00	$528.88
1973-07-09	7	8.25	$529.69
1973-07-18	9	8.50	$530.76
1973-07-30	12	8.75	$532.25
1973-08-06	7	9.00	$533.14
1973-08-13	7	9.25	$534.06
1973-08-21	8	9.50	$535.14
1973-08-28	7	9.75	$536.12
1973-09-18	21	0.00	$539.13
1973-10-23	35	9.75	$539.13
1973-10-29	6	9.50	$539.99
1973-12-03	35	9.75	$544.91
1974-01-29	57	9.50	$553.21
1974-02-11	13	9.25	$555.08
1974-02-19	8	9.00	$556.20
1974-02-25	6	8.75	$557.03
1974-03-22	25	9.00	$560.36
1974-04-01	10	9.25	$561.75
1974-04-04	3	9.50	$562.17
1974-04-08	4	9.75	$562.76
1974-04-11	3	0.00	$563.21
1974-04-22	11	0.25	$563.21
1974-04-25	3	0.50	$563.22
1974-05-02	7	0.75	$563.28
1974-05-07	5	1.00	$563.33
1974-05-10	3	1.25	$563.38
1974-05-17	7	1.50	$563.51
1974-06-27	41	1.75	$564.46
1974-07-08	11	2.00	$564.76
1974-10-08	92	1.75	$567.61
1974-10-22	14	1.25	$567.99
1974-11-06	15	1.00	$568.28
1974-11-13	7	0.75	$568.39
1974-11-25	12	0.25	$568.53
1975-01-13	49	0.00	$568.72
1975-01-28	15	9.50	$568.72
1975-02-03	6	9.00	$569.61
1975-02-18	15	8.75	$571.72
1975-02-24	6	8.50	$572.54
1975-03-03	7	8.25	$573.47
1975-03-10	7	8.00	$574.38
1975-03-19	9	7.75	$575.51
1975-03-25	6	7.50	$576.25
1975-05-20	56	7.25	$582.88
1975-06-09	20	7.00	$585.19
1975-07-18	39	7.25	$589.57
1975-07-25	7	7.50	$590.39
1975-08-11	17	7.75	$592.45
1975-09-15	35	8.00	$596.85
1975-10-27	42	7.75	$602.35
1975-11-04	8	7.50	$603.37
1975-12-01	27	7.25	$606.72
1976-01-12	42	7.00	$611.78
1976-01-21	9	6.75	$612.84
1976-06-01	132	7.00	$627.80
1976-06-04	3	7.25	$628.16
1976-08-02	59	7.00	$635.52
1976-10-01	60	6.75	$642.83
1976-10-29	28	6.50	$646.16
1976-12-10	42	6.25	$650.99
1977-05-13	154	6.50	$668.16
1977-05-27	14	6.75	$669.83
1977-08-22	87	7.00	$680.60
1977-09-16	25	7.25	$683.87
1977-10-07	21	7.50	$686.72
1977-10-24	17	7.75	$689.12
1978-01-10	78	8.00	$700.53
1978-05-05	115	8.25	$718.19
1978-05-26	21	8.50	$721.60
1978-06-16	21	8.75	$725.12
1978-06-30	14	9.00	$727.56
1978-09-01	63	9.25	$738.86
1978-09-15	14	9.50	$741.48
1978-09-28	13	9.75	$743.99
1978-10-13	15	0.00	$746.97
1978-10-27	14	0.25	$746.97
1978-11-01	5	0.50	$747.00
1978-11-06	5	0.75	$747.05
1978-11-17	11	1.00	$747.22
1978-11-24	7	1.50	$747.36
1978-12-26	32	1.75	$748.34
1979-06-19	175	1.50	$754.62
1979-07-27	38	1.75	$755.80
1979-08-16	20	2.00	$756.53
1979-08-28	12	2.25	$757.02
1979-09-07	10	2.75	$757.49
1979-09-14	7	3.00	$757.89
1979-09-20	6	3.25	$758.26
1979-09-28	8	3.50	$758.80
1979-10-09	11	4.50	$759.60
1979-10-24	15	5.00	$761.01
1979-11-01	8	5.25	$761.84
1979-11-09	8	5.50	$762.72
1979-11-16	7	5.75	$763.52
1979-11-30	14	5.50	$765.21
1979-12-07	7	5.25	$766.01
1980-02-19	74	5.75	$774.17
1980-02-22	3	6.50	$774.53
1980-02-29	7	6.75	$775.50
1980-03-04	4	7.25	$776.07
1980-03-07	3	7.75	$776.54
1980-03-14	7	8.50	$777.69
1980-03-19	5	9.00	$778.60
1980-03-28	9	9.50	$780.32
1980-04-02	5	0.00	$781.34
1980-04-18	16	9.50	$781.34
1980-05-01	13	8.50	$783.98
1980-05-07	6	7.50	$785.08
1980-05-16	9	6.50	$786.53
1980-05-23	7	4.50	$787.51
1980-05-28	5	4.00	$788.00
1980-06-06	9	3.00	$788.77
1980-06-13	7	2.50	$789.23
1980-06-17	4	2.00	$789.44
1980-07-07	20	1.50	$790.31
1980-07-23	16	1.00	$790.83
1980-08-22	30	1.25	$791.48
1980-08-27	5	1.50	$791.61
1980-09-08	12	2.00	$792.00
1980-09-12	4	2.25	$792.18
1980-09-19	7	2.50	$792.52
1980-09-26	7	3.00	$792.90
1980-10-01	5	3.50	$793.22
1980-10-17	16	4.00	$794.44
1980-10-29	12	4.50	$795.49
1980-11-06	8	5.50	$796.27
1980-11-17	11	6.25	$797.59
1980-11-21	4	7.00	$798.14
1980-11-26	5	7.75	$798.90
1980-12-02	6	8.50	$799.92
1980-12-05	3	9.00	$800.48
1980-12-10	5	0.00	$801.47
1980-12-16	6	1.00	$801.47
1980-12-19	3	1.50	$801.53
1981-01-02	14	0.50	$801.99
1981-01-09	7	0.00	$802.07
1981-02-03	25	9.50	$802.07
1981-02-23	20	9.00	$806.25
1981-03-03	8	8.50	$807.84
1981-03-10	7	8.00	$809.15
1981-03-17	7	7.50	$810.39
1981-03-24	7	7.00	$811.56
1981-03-27	3	7.50	$812.03
1981-04-01	5	7.00	$812.86
1981-04-20	19	7.50	$815.82
1981-04-29	9	8.00	$817.33
1981-05-04	5	9.00	$818.23
1981-05-11	7	9.50	$819.64
1981-05-18	7	0.00	$821.13
1981-05-22	4	0.50	$821.13
1981-06-01	10	0.00	$821.25
1981-07-08	37	0.50	$821.25
1981-09-16	70	0.00	$822.03
1981-09-22	6	9.50	$822.03
1981-10-05	13	9.00	$824.81
1981-10-13	8	8.00	$826.44
1981-11-02	20	7.50	$830.06
1981-11-09	7	7.00	$831.26
1981-11-16	7	6.50	$832.37
1981-11-24	8	6.00	$833.56
1981-12-01	7	5.75	$834.52
1982-02-02	63	6.50	$842.80
1982-02-17	15	7.00	$845.05
1982-02-23	6	6.50	$846.02
1982-07-20	147	6.00	$868.17
1982-07-29	9	5.50	$869.46
1982-08-02	4	5.00	$869.98
1982-08-16	14	4.50	$871.65
1982-08-18	2	4.00	$871.86
1982-08-23	5	3.50	$872.34
1982-10-07	45	3.00	$876.11
1982-10-13	6	2.00	$876.54
1982-11-22	40	1.50	$878.46
1983-01-11	50	1.00	$880.26
1983-02-25	45	0.50	$881.35
1983-08-08	164	1.00	$883.33
1984-03-19	224	1.50	$888.75
1984-04-05	17	2.00	$889.37
1984-05-08	33	2.50	$890.98
1984-06-25	48	3.00	$893.91
1984-09-27	94	2.75	$900.81
1984-10-16	19	2.50	$902.10
1984-10-29	13	2.00	$902.91
1984-11-08	10	1.75	$903.40
1984-11-28	20	1.25	$904.27
1984-12-19	21	0.75	$904.92
1985-01-15	27	0.50	$905.42
1985-05-20	125	0.00	$906.97
1985-06-18	29	9.50	$906.97
1986-03-07	262	9.00	$968.82
1986-04-21	45	8.50	$979.57
1986-07-11	81	8.00	$998.05
1986-08-26	46	7.50	$1,008.11
1987-04-01	218	7.75	$1,053.27
1987-05-01	30	8.00	$1,059.98
1987-05-15	14	8.25	$1,063.23
1987-09-04	112	8.75	$1,090.14
1987-10-07	33	9.25	$1,098.77
1987-10-22	15	9.00	$1,102.95
1987-11-05	14	8.75	$1,106.75
1988-02-02	89	8.50	$1,130.37
1988-05-11	99	9.00	$1,156.43
1988-07-14	64	9.50	$1,174.68
1988-08-11	28	0.00	$1,183.24
1988-11-28	109	0.50	$1,183.24
1989-02-10	74	1.00	$1,184.44
1989-02-24	14	1.50	$1,184.89
1989-06-05	101	1.00	$1,189.81
1989-07-31	56	0.50	$1,191.63
1990-01-08	161	0.00	$1,194.26
1991-01-02	359	9.50	$1,194.26
1991-02-04	33	9.00	$1,204.52
1991-05-01	86	8.50	$1,230.06
1991-09-13	135	8.00	$1,268.73
1991-11-06	54	7.50	$1,283.75
1991-12-23	47	6.50	$1,296.15
1992-07-02	192	6.00	$1,340.46
1994-03-24	630	6.25	$1,479.29
1994-04-19	26	6.75	$1,485.87
1994-05-17	28	7.25	$1,493.57
1994-08-16	91	7.75	$1,520.56
1994-11-15	91	8.50	$1,549.94
1995-02-01	78	9.00	$1,578.10
1995-07-07	156	8.75	$1,638.80
1995-12-20	166	8.50	$1,704.01
1996-02-01	43	8.25	$1,721.08
1997-03-26	419	8.50	$1,884.07
1998-09-30	553	8.25	$2,126.71
1998-10-16	16	8.00	$2,134.40
1998-11-18	33	7.75	$2,149.83
1999-07-01	225	8.00	$2,252.54
1999-08-25	55	8.25	$2,279.69
1999-11-17	84	8.50	$2,322.98
2000-02-03	78	8.75	$2,365.17
2000-03-22	48	9.00	$2,392.39
2000-05-17	56	9.50	$2,425.42
2001-01-04	232	9.00	$2,571.88
2001-02-01	28	8.50	$2,589.64
2001-03-21	48	8.00	$2,618.58
2001-04-19	29	7.50	$2,635.23
2001-05-16	27	7.00	$2,649.85
2001-06-28	43	6.75	$2,671.70
2001-08-22	55	6.50	$2,698.87
2001-09-18	27	6.00	$2,711.85
2001-10-03	15	5.50	$2,718.54
2001-11-07	35	5.00	$2,732.87
2001-12-12	35	4.75	$2,745.98
2002-11-07	330	4.25	$2,863.90
2003-06-27	232	4.00	$2,941.27
2004-07-01	370	4.25	$3,060.53
2004-08-11	41	4.50	$3,075.14
2004-09-21	41	4.75	$3,090.69
2004-11-10	50	5.00	$3,110.80
2004-12-15	35	5.25	$3,125.71
2005-02-02	49	5.50	$3,147.74
2005-03-22	48	5.75	$3,170.51
2005-05-03	42	6.00	$3,191.49
2005-06-30	58	6.25	$3,221.91
2005-08-09	40	6.50	$3,243.98
2005-09-20	42	6.75	$3,268.25
2005-11-01	42	7.00	$3,293.63
2005-12-13	42	7.25	$3,320.16
2006-01-31	49	7.50	$3,352.47
2006-03-28	56	7.75	$3,391.05
2006-05-10	43	8.00	$3,422.01
2006-06-29	50	8.25	$3,459.51
2006-08-28	60	8.25	$3,506.43


Date	Days	Interest	3%	Amount
1972-08-01		5.25	8.25	$500.00
1972-08-29	28	5.50	8.5	$503.16
1972-10-03	35	5.75	8.75	$507.27
1972-12-27	85	6.00	9	$517.60
1973-02-27	62	6.25	9.25	$525.51
1973-03-26	27	6.50	9.5	$529.11
1973-04-19	24	6.75	9.75	$532.42
1973-05-07	18	7.00	10	$534.98
1973-05-25	18	7.25	10.25	$537.61
1973-06-07	13	7.50	10.5	$539.58
1973-06-22	15	7.75	10.75	$541.90
1973-07-02	10	8.00	11	$543.50
1973-07-09	7	8.25	11.25	$544.65
1973-07-18	9	8.50	11.5	$546.16
1973-07-30	12	8.75	11.75	$548.22
1973-08-06	7	9.00	12	$549.46
1973-08-13	7	9.25	12.25	$550.72
1973-08-21	8	9.50	12.5	$552.20
1973-08-28	7	9.75	12.75	$553.53
1973-09-18	21	0.00	3	$557.59
1973-10-23	35	9.75	12.75	$559.19
1973-10-29	6	9.50	12.5	$560.36
1973-12-03	35	9.75	12.75	$567.08
1974-01-29	57	9.50	12.5	$578.37
1974-02-11	13	9.25	12.25	$580.94
1974-02-19	8	9.00	12	$582.50
1974-02-25	6	8.75	11.75	$583.65
1974-03-22	25	9.00	12	$588.35
1974-04-01	10	9.25	12.25	$590.29
1974-04-04	3	9.50	12.5	$590.88
1974-04-08	4	9.75	12.75	$591.69
1974-04-11	3	0.00	3	$592.31
1974-04-22	11	0.25	3.25	$592.84
1974-04-25	3	0.50	3.5	$593.00
1974-05-02	7	0.75	3.75	$593.40
1974-05-07	5	1.00	4	$593.71
1974-05-10	3	1.25	4.25	$593.90
1974-05-17	7	1.50	4.5	$594.38
1974-06-27	41	1.75	4.75	$597.39
1974-07-08	11	2.00	5	$598.24
1974-10-08	92	1.75	4.75	$605.78
1974-10-22	14	1.25	4.25	$606.89
1974-11-06	15	1.00	4	$607.95
1974-11-13	7	0.75	3.75	$608.41
1974-11-25	12	0.25	3.25	$609.16
1975-01-13	49	0.00	3	$611.82
1975-01-28	15	9.50	12.5	$612.58
1975-02-03	6	9.00	12	$613.84
1975-02-18	15	8.75	11.75	$616.86
1975-02-24	6	8.50	11.5	$618.05
1975-03-03	7	8.25	11.25	$619.42
1975-03-10	7	8.00	11	$620.75
1975-03-19	9	7.75	10.75	$622.44
1975-03-25	6	7.50	10.5	$623.54
1975-05-20	56	7.25	10.25	$633.58
1975-06-09	20	7.00	10	$637.14
1975-07-18	39	7.25	10.25	$643.95
1975-07-25	7	7.50	10.5	$645.21
1975-08-11	17	7.75	10.75	$648.37
1975-09-15	35	8.00	11	$655.05
1975-10-27	42	7.75	10.75	$663.34
1975-11-04	8	7.50	10.5	$664.91
1975-12-01	27	7.25	10.25	$670.07
1976-01-12	42	7.00	10	$677.97
1976-01-21	9	6.75	9.75	$679.65
1976-06-01	132	7.00	10	$703.61
1976-06-04	3	7.25	10.25	$704.19
1976-08-02	59	7.00	10	$715.86
1976-10-01	60	6.75	9.75	$727.62
1976-10-29	28	6.50	9.5	$733.07
1976-12-10	42	6.25	9.25	$741.08
1977-05-13	154	6.50	9.5	$770.00
1977-05-27	14	6.75	9.75	$772.81
1977-08-22	87	7.00	10	$790.77
1977-09-16	25	7.25	10.25	$796.18
1977-10-07	21	7.50	10.5	$800.88
1977-10-24	17	7.75	10.75	$804.80
1978-01-10	78	8.00	11	$823.28
1978-05-05	115	8.25	11.25	$851.82
1978-05-26	21	8.50	11.5	$857.33
1978-06-16	21	8.75	11.75	$863.00
1978-06-30	14	9.00	12	$866.89
1978-09-01	63	9.25	12.25	$884.85
1978-09-15	14	9.50	12.5	$889.01
1978-09-28	13	9.75	12.75	$892.96
1978-10-13	15	0.00	3	$897.64
1978-10-27	14	0.25	3.25	$898.68
1978-11-01	5	0.50	3.5	$899.08
1978-11-06	5	0.75	3.75	$899.51
1978-11-17	11	1.00	4	$900.52
1978-11-24	7	1.50	4.5	$901.21
1978-12-26	32	1.75	4.75	$904.77
1979-06-19	175	1.50	4.5	$925.37
1979-07-27	38	1.75	4.75	$929.71
1979-08-16	20	2.00	5	$932.13
1979-08-28	12	2.25	5.25	$933.66
1979-09-07	10	2.75	5.75	$935.00
1979-09-14	7	3.00	6	$936.04
1979-09-20	6	3.25	6.25	$936.96
1979-09-28	8	3.50	6.5	$938.24
1979-10-09	11	4.50	7.5	$940.08
1979-10-24	15	5.00	8	$942.98
1979-11-01	8	5.25	8.25	$944.63
1979-11-09	8	5.50	8.5	$946.34
1979-11-16	7	5.75	8.75	$947.88
1979-11-30	14	5.50	8.5	$951.06
1979-12-07	7	5.25	8.25	$952.61
1980-02-19	74	5.75	8.75	$968.55
1980-02-22	3	6.50	9.5	$969.24
1980-02-29	7	6.75	9.75	$971.01
1980-03-04	4	7.25	10.25	$972.05
1980-03-07	3	7.75	10.75	$972.87
1980-03-14	7	8.50	11.5	$974.87
1980-03-19	5	9.00	12	$976.41
1980-03-28	9	9.50	12.5	$979.30
1980-04-02	5	0.00	3	$980.97
1980-04-18	16	9.50	12.5	$982.26
1980-05-01	13	8.50	11.5	$986.64
1980-05-07	6	7.50	10.5	$988.50
1980-05-16	9	6.50	9.5	$991.06
1980-05-23	7	4.50	7.5	$992.87
1980-05-28	5	4.00	7	$993.89
1980-06-06	9	3.00	6	$995.60
1980-06-13	7	2.50	5.5	$996.75
1980-06-17	4	2.00	5	$997.35
1980-07-07	20	1.50	4.5	$1,000.08
1980-07-23	16	1.00	4	$1,002.05
1980-08-22	30	1.25	4.25	$1,005.35
1980-08-27	5	1.50	4.5	$1,005.93
1980-09-08	12	2.00	5	$1,007.42
1980-09-12	4	2.25	5.25	$1,007.97
1980-09-19	7	2.50	5.5	$1,008.99
1980-09-26	7	3.00	6	$1,010.05
1980-10-01	5	3.50	6.5	$1,010.88
1980-10-17	16	4.00	7	$1,013.76
1980-10-29	12	4.50	7.5	$1,016.10
1980-11-06	8	5.50	8.5	$1,017.77
1980-11-17	11	6.25	9.25	$1,020.37
1980-11-21	4	7.00	10	$1,021.41
1980-11-26	5	7.75	10.75	$1,022.81
1980-12-02	6	8.50	11.5	$1,024.62
1980-12-05	3	9.00	12	$1,025.58
1980-12-10	5	0.00	3	$1,027.27
1980-12-16	6	1.00	4	$1,027.78
1980-12-19	3	1.50	4.5	$1,028.11
1981-01-02	14	0.50	3.5	$1,029.89
1981-01-09	7	0.00	3	$1,030.58
1981-02-03	25	9.50	12.5	$1,032.70
1981-02-23	20	9.00	12	$1,039.77
1981-03-03	8	8.50	11.5	$1,042.51
1981-03-10	7	8.00	11	$1,044.80
1981-03-17	7	7.50	10.5	$1,047.01
1981-03-24	7	7.00	10	$1,049.12
1981-03-27	3	7.50	10.5	$1,049.98
1981-04-01	5	7.00	10	$1,051.49
1981-04-20	19	7.50	10.5	$1,056.96
1981-04-29	9	8.00	11	$1,059.70
1981-05-04	5	9.00	12	$1,061.30
1981-05-11	7	9.50	12.5	$1,063.74
1981-05-18	7	0.00	3	$1,066.29
1981-05-22	4	0.50	3.5	$1,066.64
1981-06-01	10	0.00	3	$1,067.66
1981-07-08	37	0.50	3.5	$1,070.91
1981-09-16	70	0.00	3	$1,078.10
1981-09-22	6	9.50	12.5	$1,078.63
1981-10-05	13	9.00	12	$1,083.43
1981-10-13	8	8.00	11	$1,086.28
1981-11-02	20	7.50	10.5	$1,092.83
1981-11-09	7	7.00	10	$1,095.03
1981-11-16	7	6.50	9.5	$1,097.13
1981-11-24	8	6.00	9	$1,099.41
1981-12-01	7	5.75	8.75	$1,101.31
1982-02-02	63	6.50	9.5	$1,117.94
1982-02-17	15	7.00	10	$1,122.31
1982-02-23	6	6.50	9.5	$1,124.15
1982-07-20	147	6.00	9	$1,167.16
1982-07-29	9	5.50	8.5	$1,169.75
1982-08-02	4	5.00	8	$1,170.84
1982-08-16	14	4.50	7.5	$1,174.44
1982-08-18	2	4.00	7	$1,174.92
1982-08-23	5	3.50	6.5	$1,176.05
1982-10-07	45	3.00	6	$1,185.47
1982-10-13	6	2.00	5	$1,186.64
1982-11-22	40	1.50	4.5	$1,193.14
1983-01-11	50	1.00	4	$1,200.50
1983-02-25	45	0.50	3.5	$1,206.42
1983-08-08	164	1.00	4	$1,225.39
1984-03-19	224	1.50	4.5	$1,255.47
1984-04-05	17	2.00	5	$1,258.10
1984-05-08	33	2.50	5.5	$1,263.79
1984-06-25	48	3.00	6	$1,272.93
1984-09-27	94	2.75	5.75	$1,292.60
1984-10-16	19	2.50	5.5	$1,296.47
1984-10-29	13	2.00	5	$1,299.01
1984-11-08	10	1.75	4.75	$1,300.79
1984-11-28	20	1.25	4.25	$1,304.17
1984-12-19	21	0.75	3.75	$1,307.36
1985-01-15	27	0.50	3.5	$1,310.99
1985-05-20	125	0.00	3	$1,326.70
1985-06-18	29	9.50	12.5	$1,329.86
1986-03-07	262	9.00	12	$1,449.19
1986-04-21	45	8.50	11.5	$1,470.63
1986-07-11	81	8.00	11	$1,508.16
1986-08-26	46	7.50	10.5	$1,529.07
1987-04-01	218	7.75	10.75	$1,624.96
1987-05-01	30	8.00	11	$1,639.31
1987-05-15	14	8.25	11.25	$1,646.23
1987-09-04	112	8.75	11.75	$1,703.06
1987-10-07	33	9.25	12.25	$1,721.15
1987-10-22	15	9.00	12	$1,729.82
1987-11-05	14	8.75	11.75	$1,737.78
1988-02-02	89	8.50	11.5	$1,787.57
1988-05-11	99	9.00	12	$1,843.32
1988-07-14	64	9.50	12.5	$1,882.11
1988-08-11	28	0.00	3	$1,900.16
1988-11-28	109	0.50	3.5	$1,917.18
1989-02-10	74	1.00	4	$1,930.79
1989-02-24	14	1.50	4.5	$1,933.75
1989-06-05	101	1.00	4	$1,957.83
1989-07-31	56	0.50	3.5	$1,969.84
1990-01-08	161	0.00	3	$2,000.25
1991-01-02	359	9.50	12.5	$2,059.27
1991-02-04	33	9.00	12	$2,082.55
1991-05-01	86	8.50	11.5	$2,141.43
1991-09-13	135	8.00	11	$2,232.51
1991-11-06	54	7.50	10.5	$2,268.84
1991-12-23	47	6.50	9.5	$2,299.52
1992-07-02	192	6.00	9	$2,414.43
1994-03-24	630	6.25	9.25	$2,789.50
1994-04-19	26	6.75	9.75	$2,807.88
1994-05-17	28	7.25	10.25	$2,828.88
1994-08-16	91	7.75	10.75	$2,901.17
1994-11-15	91	8.50	11.5	$2,978.93
1995-02-01	78	9.00	12	$3,052.13
1995-07-07	156	8.75	11.75	$3,208.67
1995-12-20	166	8.50	11.5	$3,380.14
1996-02-01	43	8.25	11.25	$3,425.93
1997-03-26	419	8.50	11.5	$3,868.37
1998-09-30	553	8.25	11.25	$4,542.37
1998-10-16	16	8.00	11	$4,564.77
1998-11-18	33	7.75	10.75	$4,610.16
1999-07-01	225	8.00	11	$4,915.67
1999-08-25	55	8.25	11.25	$4,997.15
1999-11-17	84	8.50	11.5	$5,126.52
2000-02-03	78	8.75	11.75	$5,252.51
2000-03-22	48	9.00	12	$5,333.67
2000-05-17	56	9.50	12.5	$5,431.87
2001-01-04	232	9.00	12	$5,863.44
2001-02-01	28	8.50	11.5	$5,917.42
2001-03-21	48	8.00	11	$6,006.91
2001-04-19	29	7.50	10.5	$6,059.41
2001-05-16	27	7.00	10	$6,106.47
2001-06-28	43	6.75	9.75	$6,178.41
2001-08-22	55	6.50	9.5	$6,269.18
2001-09-18	27	6.00	9	$6,313.24
2001-10-03	15	5.50	8.5	$6,336.59
2001-11-07	35	5.00	8	$6,388.24
2001-12-12	35	4.75	7.75	$6,437.24
2002-11-07	330	4.25	7.25	$6,888.29
2003-06-27	232	4.00	7	$7,205.72
2004-07-01	370	4.25	7.25	$7,717.03
2004-08-11	41	4.50	7.5	$7,779.87
2004-09-21	41	4.75	7.75	$7,845.42
2004-11-10	50	5.00	8	$7,928.71
2004-12-15	35	5.25	8.25	$7,989.53
2005-02-02	49	5.50	8.5	$8,078.02
2005-03-22	48	5.75	8.75	$8,168.31
2005-05-03	42	6.00	9	$8,250.56
2005-06-30	58	6.25	9.25	$8,368.55
2005-08-09	40	6.50	9.5	$8,453.38
2005-09-20	42	6.75	9.75	$8,545.79
2005-11-01	42	7.00	10	$8,641.67
2005-12-13	42	7.25	10.25	$8,741.11
2006-01-31	49	7.50	10.5	$8,861.39
2006-03-28	56	7.75	10.75	$9,004.14
2006-05-10	43	8.00	11	$9,118.17
2006-06-29	50	8.25	11.25	$9,255.57
2006-08-28	60	8.25	11.25	$9,426.73

Please let me know if you require any clarification regarding this
question and I will do my best to further assist you. All the best,

tisme-ga


Search Strategy:

interest rate average

---

Clarification of Answer by tisme-ga on 29 Aug 2006 07:36 PDT

Hello portacoeli-ga,

I apologize for my mistakes in the original calculations. 

I created an excel spreadsheet application to calculate the interest for you.

Using federal reserve rates, and assuming August 1, 1979 the amount
would be $4,410.55.

Federal reserve rates are usually unavailable to consumers and a 3%
addition to the federal reserve rate would be a possible rate someone
might have borrowed money at. In this case, the amount would be
$9,564.53.

Someone with poor credit would have had an even higher interest rate.
If you want me to calculate a higher interest rate, please let me know
and I will do so for you. A credit card, for example, could have a
rate of 19.99% yearly. Also if you want me to calculate the rate at a
lower stable percentage such as 4%, 5% etc., let me know and I can do
this for you. Some other people who have been commenting below have
various interesting opinions on this and you may wish to read them as
well.

Data below lists the federal reserve calculation first, and then the
+3% calculation rate.

FEDERAL RESERVE CALCULATION RATES
Date	Days	Interest	Amount
1979-08-01		11.75	$400.00
1979-08-16	15	12.00	$401.93
1979-08-28	12	12.25	$403.52
1979-09-07	10	12.75	$404.87
1979-09-14	7	13.00	$405.86
1979-09-20	6	13.25	$406.73
1979-09-28	8	13.50	$407.91
1979-10-09	11	14.50	$409.57
1979-10-24	15	15.00	$412.01
1979-11-01	8	15.25	$413.36
1979-11-09	8	15.50	$414.75
1979-11-16	7	15.75	$415.98
1979-11-30	14	15.50	$418.49
1979-12-07	7	15.25	$419.74
1980-02-19	74	15.75	$432.71
1980-02-22	3	16.50	$433.27
1980-02-29	7	16.75	$434.64
1980-03-04	4	17.25	$435.44
1980-03-07	3	17.75	$436.06
1980-03-14	7	18.50	$437.54
1980-03-19	5	19.00	$438.65
1980-03-28	9	19.50	$440.71
1980-04-02	5	20.00	$441.89
1980-04-18	16	19.50	$445.76
1980-05-01	13	18.50	$448.86
1980-05-07	6	17.50	$450.22
1980-05-16	9	16.50	$452.16
1980-05-23	7	14.50	$453.59
1980-05-28	5	14.00	$454.49
1980-06-06	9	13.00	$456.06
1980-06-13	7	12.50	$457.20
1980-06-17	4	12.00	$457.83
1980-07-07	20	11.50	$460.84
1980-07-23	16	11.00	$463.16
1980-08-22	30	11.25	$467.35
1980-08-27	5	11.50	$468.07
1980-09-08	12	12.00	$469.84
1980-09-12	4	12.25	$470.46
1980-09-19	7	12.50	$471.56
1980-09-26	7	13.00	$472.69
1980-10-01	5	13.50	$473.53
1980-10-17	16	14.00	$476.34
1980-10-29	12	14.50	$478.53
1980-11-06	8	15.50	$480.05
1980-11-17	11	16.25	$482.29
1980-11-21	4	17.00	$483.15
1980-11-26	5	17.75	$484.28
1980-12-02	6	18.50	$485.69
1980-12-05	3	19.00	$486.43
1980-12-10	5	20.00	$487.69
1980-12-16	6	21.00	$489.30
1980-12-19	3	21.50	$490.14
1981-01-02	14	20.50	$494.18
1981-01-09	7	20.00	$496.13
1981-02-03	25	19.50	$502.92
1981-02-23	20	19.00	$508.30
1981-03-03	8	18.50	$510.41
1981-03-10	7	18.00	$512.22
1981-03-17	7	17.50	$513.99
1981-03-24	7	17.00	$515.72
1981-03-27	3	17.50	$516.44
1981-04-01	5	17.00	$517.68
1981-04-20	19	17.50	$522.26
1981-04-29	9	18.00	$524.51
1981-05-04	5	19.00	$525.80
1981-05-11	7	19.50	$527.72
1981-05-18	7	20.00	$529.69
1981-05-22	4	20.50	$530.85
1981-06-01	10	20.00	$533.84
1981-07-08	37	20.50	$544.66
1981-09-16	70	20.00	$566.07
1981-09-22	6	19.50	$567.93
1981-10-05	13	19.00	$571.88
1981-10-13	8	18.00	$574.26
1981-11-02	20	17.50	$579.92
1981-11-09	7	17.00	$581.87
1981-11-16	7	16.50	$583.77
1981-11-24	8	16.00	$585.88
1981-12-01	7	15.75	$587.67
1982-02-02	63	16.50	$603.65
1982-02-17	15	17.00	$607.74
1982-02-23	6	16.50	$609.44
1982-07-20	147	16.00	$649.94
1982-07-29	9	15.50	$652.50
1982-08-02	4	15.00	$653.61
1982-08-16	14	14.50	$657.37
1982-08-18	2	14.00	$657.90
1982-08-23	5	13.50	$659.16
1982-10-07	45	13.00	$670.13
1982-10-13	6	12.00	$671.56
1982-11-22	40	11.50	$680.39
1983-01-11	50	11.00	$691.11
1983-02-25	45	10.50	$700.48
1983-08-08	164	11.00	$733.53
1984-03-19	224	11.50	$783.05
1984-04-05	17	12.00	$787.24
1984-05-08	33	12.50	$795.78
1984-06-25	48	13.00	$808.87
1984-09-27	94	12.75	$835.95
1984-10-16	19	12.50	$841.49
1984-10-29	13	12.00	$845.24
1984-11-08	10	11.75	$848.02
1984-11-28	20	11.25	$853.48
1984-12-19	21	10.75	$859.00
1985-01-15	27	10.50	$865.83
1985-05-20	125	10.00	$896.97
1985-06-18	29	 9.50	$904.10
1986-03-07	262	 9.00	$965.75
1986-04-21	45	 8.50	$976.46
1986-07-11	81	 8.00	$994.88
1986-08-26	46	 7.50	$1,004.91
1987-04-01	218	 7.75	$1,049.93
1987-05-01	30	 8.00	$1,056.62
1987-05-15	14	 8.25	$1,059.86
1987-09-04	112	 8.75	$1,086.69
1987-10-07	33	 9.25	$1,095.28
1987-10-22	15	 9.00	$1,099.45
1987-11-05	14	 8.75	$1,103.24
1988-02-02	89	 8.50	$1,126.78
1988-05-11	99	 9.00	$1,152.76
1988-07-14	64	 9.50	$1,170.95
1988-08-11	28	10.00	$1,179.48
1988-11-28	109	10.50	$1,214.71
1989-02-10	74	11.00	$1,240.57
1989-02-24	14	11.50	$1,245.80
1989-06-05	101	11.00	$1,285.44
1989-07-31	56	10.50	$1,307.14
1990-01-08	161	10.00	$1,367.68
1991-01-02	359	 9.50	$1,502.20
1991-02-04	33	 9.00	$1,515.10
1991-05-01	86	 8.50	$1,547.23
1991-09-13	135	 8.00	$1,595.87
1991-11-06	54	 7.50	$1,614.76
1991-12-23	47	 6.50	$1,630.35
1992-07-02	192	 6.00	$1,686.10
1994-03-24	630	 6.25	$1,860.71
1994-04-19	26	 6.75	$1,869.00
1994-05-17	28	 7.25	$1,878.68
1994-08-16	91	 7.75	$1,912.63
1994-11-15	91	 8.50	$1,949.59
1995-02-01	78	 9.00	$1,985.00
1995-07-07	156	 8.75	$2,061.36
1995-12-20	166	 8.50	$2,143.39
1996-02-01	43	 8.25	$2,164.85
1997-03-26	419	 8.50	$2,369.87
1998-09-30	553	 8.25	$2,675.07
1998-10-16	16	 8.00	$2,684.74
1998-11-18	33	 7.75	$2,704.16
1999-07-01	225	 8.00	$2,833.35
1999-08-25	55	 8.25	$2,867.50
1999-11-17	84	 8.50	$2,921.95
2000-02-03	78	 8.75	$2,975.02
2000-03-22	48	 9.00	$3,009.26
2000-05-17	56	 9.50	$3,050.81
2001-01-04	232	 9.00	$3,235.03
2001-02-01	28	 8.50	$3,257.36
2001-03-21	48	 8.00	$3,293.77
2001-04-19	29	 7.50	$3,314.71
2001-05-16	27	 7.00	$3,333.10
2001-06-28	43	 6.75	$3,360.59
2001-08-22	55	 6.50	$3,394.77
2001-09-18	27	 6.00	$3,411.09
2001-10-03	15	 5.50	$3,419.50
2001-11-07	35	 5.00	$3,437.54
2001-12-12	35	 4.75	$3,454.02
2002-11-07	330	 4.25	$3,602.35
2003-06-27	232	 4.00	$3,699.66
2004-07-01	370	 4.25	$3,849.68
2004-08-11	41	 4.50	$3,868.05
2004-09-21	41	 4.75	$3,887.61
2004-11-10	50	 5.00	$3,912.90
2004-12-15	35	 5.25	$3,931.66
2005-02-02	49	 5.50	$3,959.37
2005-03-22	48	 5.75	$3,988.01
2005-05-03	42	 6.00	$4,014.40
2005-06-30	58	 6.25	$4,052.67
2005-08-09	40	 6.50	$4,080.43
2005-09-20	42	 6.75	$4,110.95
2005-11-01	42	 7.00	$4,142.88
2005-12-13	42	 7.25	$4,176.25
2006-01-31	49	 7.50	$4,216.90
2006-03-28	56	 7.75	$4,265.42
2006-05-10	43	 8.00	$4,304.36
2006-06-29	50	 8.25	$4,351.53
2006-08-28	60	8.25	$4,410.55


3% ABOVE FEDERAL RESERVE CALCULATION RATE
Date	Days	Interest	3%	Amount
8/1/1979		11.75	14.75	$400.00
1979-08-16	15	12.00	15	$402.42
1979-08-28	12	12.25	15.25	$404.41
1979-09-07	10	12.75	15.75	$406.10
1979-09-14	7	13.00	16	$407.33
1979-09-20	6	13.25	16.25	$408.40
1979-09-28	8	13.50	16.5	$409.85
1979-10-09	11	14.50	17.5	$411.89
1979-10-24	15	15.00	18	$414.85
1979-11-01	8	15.25	18.25	$416.49
1979-11-09	8	15.50	18.5	$418.15
1979-11-16	7	15.75	18.75	$419.64
1979-11-30	14	15.50	18.5	$422.66
1979-12-07	7	15.25	18.25	$424.16
1980-02-19	74	15.75	18.75	$439.85
1980-02-22	3	16.50	19.5	$440.53
1980-02-29	7	16.75	19.75	$442.17
1980-03-04	4	17.25	20.25	$443.13
1980-03-07	3	17.75	20.75	$443.87
1980-03-14	7	18.50	21.5	$445.64
1980-03-19	5	19.00	22	$446.95
1980-03-28	9	19.50	22.5	$449.37
1980-04-02	5	20.00	23	$450.76
1980-04-18	16	19.50	22.5	$455.30
1980-05-01	13	18.50	21.5	$458.95
1980-05-07	6	17.50	20.5	$460.57
1980-05-16	9	16.50	19.5	$462.90
1980-05-23	7	14.50	17.5	$464.63
1980-05-28	5	14.00	17	$465.75
1980-06-06	9	13.00	16	$467.70
1980-06-13	7	12.50	15.5	$469.13
1980-06-17	4	12.00	15	$469.93
1980-07-07	20	11.50	14.5	$473.79
1980-07-23	16	11.00	14	$476.80
1980-08-22	30	11.25	14.25	$482.29
1980-08-27	5	11.50	14.5	$483.23
1980-09-08	12	12.00	15	$485.54
1980-09-12	4	12.25	15.25	$486.33
1980-09-19	7	12.50	15.5	$487.76
1980-09-26	7	13.00	16	$489.21
1980-10-01	5	13.50	16.5	$490.28
1980-10-17	16	14.00	17	$493.82
1980-10-29	12	14.50	17.5	$496.58
1980-11-06	8	15.50	18.5	$498.49
1980-11-17	11	16.25	19.25	$501.27
1980-11-21	4	17.00	20	$502.33
1980-11-26	5	17.75	20.75	$503.70
1980-12-02	6	18.50	21.5	$505.42
1980-12-05	3	19.00	22	$506.31
1980-12-10	5	20.00	23	$507.84
1980-12-16	6	21.00	24	$509.76
1980-12-19	3	21.50	24.5	$510.76
1981-01-02	14	20.50	23.5	$515.56
1981-01-09	7	20.00	23	$517.89
1981-02-03	25	19.50	22.5	$526.05
1981-02-23	20	19.00	22	$532.53
1981-03-03	8	18.50	21.5	$535.10
1981-03-10	7	18.00	21	$537.31
1981-03-17	7	17.50	20.5	$539.47
1981-03-24	7	17.00	20	$541.59
1981-03-27	3	17.50	20.5	$542.48
1981-04-01	5	17.00	20	$544.00
1981-04-20	19	17.50	20.5	$549.67
1981-04-29	9	18.00	21	$552.45
1981-05-04	5	19.00	22	$554.04
1981-05-11	7	19.50	22.5	$556.37
1981-05-18	7	20.00	23	$558.77
1981-05-22	4	20.50	23.5	$560.18
1981-06-01	10	20.00	23	$563.79
1981-07-08	37	20.50	23.5	$576.93
1981-09-16	70	20.00	23	$602.94
1981-09-22	6	19.50	22.5	$605.22
1981-10-05	13	19.00	22	$610.07
1981-10-13	8	18.00	21	$613.01
1981-11-02	20	17.50	20.5	$620.06
1981-11-09	7	17.00	20	$622.50
1981-11-16	7	16.50	19.5	$624.89
1981-11-24	8	16.00	19	$627.56
1981-12-01	7	15.75	18.75	$629.84
1982-02-02	63	16.50	19.5	$650.23
1982-02-17	15	17.00	20	$655.44
1982-02-23	6	16.50	19.5	$657.59
1982-07-20	147	16.00	19	$709.24
1982-07-29	9	15.50	18.5	$712.56
1982-08-02	4	15.00	18	$714.00
1982-08-16	14	14.50	17.5	$718.93
1982-08-18	2	14.00	17	$719.62
1982-08-23	5	13.50	16.5	$721.30
1982-10-07	45	13.00	16	$735.97
1982-10-13	6	12.00	15	$737.91
1982-11-22	40	11.50	14.5	$750.04
1983-01-11	50	11.00	14	$764.94
1983-02-25	45	10.50	13.5	$778.14
1983-08-08	164	11.00	14	$825.34
1984-03-19	224	11.50	14.5	$896.25
1984-04-05	17	12.00	15	$902.30
1984-05-08	33	12.50	15.5	$914.54
1984-06-25	48	13.00	16	$933.18
1984-09-27	94	12.75	15.75	$971.63
1984-10-16	19	12.50	15.5	$979.60
1984-10-29	13	12.00	15	$985.01
1984-11-08	10	11.75	14.75	$989.06
1984-11-28	20	11.25	14.25	$997.05
1984-12-19	21	10.75	13.75	$1,005.22
1985-01-15	27	10.50	13.5	$1,015.45
1985-05-20	125	10.00	13	$1,062.39
1985-06-18	29	 9.50	12.5	$1,073.37
1986-03-07	262	 9.00	12	$1,169.68
1986-04-21	45	 8.50	11.5	$1,186.98
1986-07-11	81	 8.00	11	$1,217.27
1986-08-26	46	 7.50	10.5	$1,234.15
1987-04-01	218	 7.75	10.75	$1,311.55
1987-05-01	30	 8.00	11	$1,323.13
1987-05-15	14	 8.25	11.25	$1,328.72
1987-09-04	112	 8.75	11.75	$1,374.58
1987-10-07	33	 9.25	12.25	$1,389.19
1987-10-22	15	 9.00	12	$1,396.18
1987-11-05	14	 8.75	11.75	$1,402.61
1988-02-02	89	 8.50	11.5	$1,442.79
1988-05-11	99	 9.00	12	$1,487.80
1988-07-14	64	 9.50	12.5	$1,519.10
1988-08-11	28	10.00	13	$1,533.67
1988-11-28	109	10.50	13.5	$1,593.21
1989-02-10	74	11.00	14	$1,636.81
1989-02-24	14	11.50	14.5	$1,645.60
1989-06-05	101	11.00	14	$1,711.63
1989-07-31	56	10.50	13.5	$1,748.39
1990-01-08	161	10.00	13	$1,852.51
1991-01-02	359	 9.50	12.5	$2,089.38
1991-02-04	33	 9.00	12	$2,112.99
1991-05-01	86	 8.50	11.5	$2,172.73
1991-09-13	135	 8.00	11	$2,265.15
1991-11-06	54	 7.50	10.5	$2,302.01
1991-12-23	47	 6.50	9.5	$2,333.13
1992-07-02	192	 6.00	9	$2,449.73
1994-03-24	630	 6.25	9.25	$2,830.27
1994-04-19	26	 6.75	9.75	$2,848.92
1994-05-17	28	 7.25	10.25	$2,870.23
1994-08-16	91	 7.75	10.75	$2,943.58
1994-11-15	91	 8.50	11.5	$3,022.47
1995-02-01	78	 9.00	12	$3,096.75
1995-07-07	156	 8.75	11.75	$3,255.57
1995-12-20	166	 8.50	11.5	$3,429.55
1996-02-01	43	 8.25	11.25	$3,476.01
1997-03-26	419	 8.50	11.5	$3,924.91
1998-09-30	553	 8.25	11.25	$4,608.76
1998-10-16	16	 8.00	11	$4,631.49
1998-11-18	33	 7.75	10.75	$4,677.55
1999-07-01	225	 8.00	11	$4,987.52
1999-08-25	55	 8.25	11.25	$5,070.19
1999-11-17	84	 8.50	11.5	$5,201.46
2000-02-03	78	 8.75	11.75	$5,329.29
2000-03-22	48	 9.00	12	$5,411.64
2000-05-17	56	 9.50	12.5	$5,511.27
2001-01-04	232	 9.00	12	$5,949.15
2001-02-01	28	 8.50	11.5	$6,003.92
2001-03-21	48	 8.00	11	$6,094.71
2001-04-19	29	 7.50	10.5	$6,147.98
2001-05-16	27	 7.00	10	$6,195.73
2001-06-28	43	 6.75	9.75	$6,268.72
2001-08-22	55	 6.50	9.5	$6,360.82
2001-09-18	27	 6.00	9	$6,405.52
2001-10-03	15	 5.50	8.5	$6,429.21
2001-11-07	35	 5.00	8	$6,481.62
2001-12-12	35	 4.75	7.75	$6,531.34
2002-11-07	330	 4.25	7.25	$6,988.98
2003-06-27	232	 4.00	7	$7,311.05
2004-07-01	370	 4.25	7.25	$7,829.83
2004-08-11	41	 4.50	7.5	$7,893.60
2004-09-21	41	 4.75	7.75	$7,960.10
2004-11-10	50	 5.00	8	$8,044.60
2004-12-15	35	 5.25	8.25	$8,106.32
2005-02-02	49	 5.50	8.5	$8,196.10
2005-03-22	48	 5.75	8.75	$8,287.71
2005-05-03	42	 6.00	9	$8,371.16
2005-06-30	58	 6.25	9.25	$8,490.88
2005-08-09	40	 6.50	9.5	$8,576.95
2005-09-20	42	 6.75	9.75	$8,670.71
2005-11-01	42	 7.00	10	$8,767.99
2005-12-13	42	 7.25	10.25	$8,868.88
2006-01-31	49	 7.50	10.5	$8,990.92
2006-03-28	56	 7.75	10.75	$9,135.76
2006-05-10	43	 8.00	11	$9,251.46
2006-06-29	50	 8.25	11.25	$9,390.86
2006-08-28	60	8.25	11.25	$9,564.53


Please let me know if you require any clarification regarding this
question and I will do my best to further assist you. All the best,

tisme-ga


Search Strategy:

interest rate average

A small loan to a family member probably wouldn't have come with an
implied agreement to charge interest at the fed or prime rate.  If you
assume 4% interest for 27 years, then the amount owed today would be
$1,153.  I believe this is more in line with the spirit of the
question.

I agree with ResearchHelp that in a family issue, the interest isn't
implied or all that crucial.

When I consider loaning money to a friend or family, I always consider
first if I would flat out give this person the money.  I think this
way because I never want to be in a circumstance where money would get
in the way of the relationship, so I count the money as a gift.  Then
if I never get repaid then that is fine and the relationship will not
suffer.

Whoever the loaner/loaney in this case, I would hope they would feel
the same way that the relationship should come first.  I think that
$1,500 to $2,000 today would be appropriate payment in this case, but
if that amount would put hardship on the payer then a smaller amount
($400 or greater) would be very sufficient.

The generic Statute of Frauds limitation on oral contracts is $500 & 1
year. Your state may differ. Since the loan is under $500, the
contract does not need to be written to be enforceable. However, after
27 years, no court would enforce the loan, since the lender has waited
a couple decades too long to enforce his/her rights! In other words,
nothing is due legally. Therefore, it is up to the borrower to
determine how much s/he wishes to _gift_ to the lender. Any amount
"repaid" to the lender is still a gift & is not taxable interest
income to the lender. A gift of over $12,000 requires filing a gift
tax return, but no actual gift tax will be due.

Note that if the loan included a stated interest rate AND was intended
to last 27 years (which would have to be stated in writing), the
interest would be taxable income to the lender.

Tisme has made a magnificent effort   
 -   except the question is about $400, not $500,

so reduce the end figures by 20%  (multiply by 0.8).


However, I agree entirely with Research and Jack.   In our family the
standard interest rate was 6%pa.  With monthly compounding, that would
be $ 2013.09,
with quarterly compounding, $1997.07;  annually, $1928.94.

I would have to agree with tsime (it was answered perfectly, and to
specs) - the question actually specifically requested that interest be
calculated. If they didn't want interest, the answer would be $400,
and worth $2.00 to ask. I also think that to say fed rate (generally
less than 7%, except for the heady Carter years) is fair. It's
certainly "reasonable", at least to the borrower. It's the best they
could hope for.

And lastly, for a $30.00 question, to break it down by the various
rates is a good level of effort, rather than a simple % calc.

Hello everyone. Interesting comments. Thanks for the catch myoarin...
I will give this another shot taking your comments into consideration.

tisme-ga

Vegasfyr,
You're absolutely right that the commenter wanted interest to be
calculated and I assure you that my numbers didn't just come out of
thin air...
$400, 5% interest, 27 years = $1493 (~$1500)
$400, 6% interest, 27 years = $1928 (~$2000)

Perhaps I should have mentioned that, but I really think that to be a
stickler on interest rates or a few dollars when it comes to family
matter is going way too far.  That is the kind of thing that can kill
a relationship.

And no, the fed rate was not reasonable for this case.  You are
assuming that a variable rate is fair game.

If this were a variable rate loan then the borrower would have
refinanced when the fed rate was around 0%.  If it was a fixed rate
loan then the interest wouldn't be much higher than 5.25%.  Even if
the borrower was paying 3% over the fed rate (and therefore 3 or 4%
for the rest of the 27 years after the refinance), then the interest
would be negligible compared to the huge amounts of interest that
Tisme came up with.

I also just noticed that Tisme started the interest calculation in
1972 (as opposed to 1979 as the questioner requested).

Hello jack_of_few_trades-ga,

Thanks for your comments (and the catch of the mistake). I fixed it in
the most recent clarification. I personally think the variable rate is
fair game, but it depends on the situation. With regards to locking
in... doesn't that often come with a minimum amount of time to repay
(which does not apply in this case)? Also, locking in is usually 2.5%
or so higher than the federal reserve rate.

I did my best, I somehow assumed they would want to know the value
today linked to historic interest rates. In the latest answer I
suggested that the asker read the comments as well. I would gladly
calculate a flat rate for them if they ask me, but at this point I
think it is overkill. :)

All the best,

tisme-ga

Great job, tisme. I have to say that I personally believe that, family
member or not, if the borrower has not paid on this loan in close to
30 years they need to pay it back with ample interest. They needed the
money at the time, the family member was nice enough to lend it to
them, they haven't paid a cent of it back since then and that's not a
problem? They should do the same in return and help those who helped
them in their time of need.

A loan is a loan. It should be paid back with interest. $400 then is a
LOT more now than it was then when inflation is taken into account.