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I have a question please, I'm having a difficult times calculating the right way this one...

I took a loan on July 3 2014 of \$50,000 from my bank for my friend, split it on 12 installments (about \$4330) each month.

each 3-rd of each month he paid me \$4330 in the beginning of the February 2015, my friend owed me \$10500 from some other deal.

Due to some circumstances we decided to "renew" the loan from the bank

on February 02 2015 we arrived to the bank and renewed the loan back to \$50,000

They removed what's left from the previous loan (\$25,500) and \$24,500 went in to my account, from which I gave \$14000 to my buddy... so a new \$50000 loan started from March 03....My buddy paid \$4350 each month since then... now we want to close this loan, how much he should pay ?

Is he supposed to close whatever amount of installments left and then he owes me \$24500 ?

Help me please!

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  • $\begingroup$ Consider the site Personal Finance & Money; they probably won't do calculations for you, but may be able to clarify the other aspects of the problem. $\endgroup$ – user147263 May 23 '15 at 23:13
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I'm guessing you're the pretty face of the operation, and that your friend has bad credit. So, in principle, he's the one who's on the hook for the loan. As such, he paid all the money going to the loan.

Now, I'm guessing that there were six payments made toward the loan totaling $\$25,980$ before you renewed it. When you renewed, I'm supposing the bank gave you $\$24,500$ as a way of pushing the reset button, with the bank keeping $\$1,480$ as the price of doing business in the first place.

That $\$24,500$ is your friend's money. You kept $\$10,500$ due to a side issue, refunding him his remaining $\$14,000$. At that point, you're square: you're back to the situation where you both don't owe each other anything, and you're the pretty face of the operation. So long as he pays off the loan, you'll remain square.

Unless I've horribly misunderstood something.

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