So the Cassalanters are bankers and Istrid Horn of the Zents is a loan shark.
What's a fair rate and terms for a loan, if the PCs decide to take one out?
I don't want to get too deep into calculating compound interest, but...
Currently thinking CS&E Financial Services (the Cassalanter bank) would offer a 1,000 gold business loan at 1 percent per tenday, compound on the remaining amount. To be paid in full in 50 tendays with tenday minimum payments of 20 gold.
But even that seems complex.
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Blood Frenzy. The quipper has advantage on melee attack rolls against any creature that doesn't have all its hit points.
Bite. Melee Weapon Attack: +5 to hit, reach 5 ft., one target. Hit: 1 piercing damage.
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So the Cassalanters are bankers and Istrid Horn of the Zents is a loan shark.
What's a fair rate and terms for a loan, if the PCs decide to take one out?
I don't want to get too deep into calculating compound interest, but...
Currently thinking CS&E Financial Services (the Cassalanter bank) would offer a 1,000 gold business loan at 1 percent per tenday, compound on the remaining amount. To be paid in full in 50 tendays with tenday minimum payments of 20 gold.
But even that seems complex.
Blood Frenzy. The quipper has advantage on melee attack rolls against any creature that doesn't have all its hit points.
Bite. Melee Weapon Attack: +5 to hit, reach 5 ft., one target. Hit: 1 piercing damage.
Another idea is to simply say:
25 percent interest on whatever the principle is.
Pay it back in equal amounts over 35 tendays.
So the amount owed each tenday would be: [(Principal) + .25(Principle)]/35 = Payment
And Istrid Horn could offer slightly better but quicker terms like:
[(Principal) + .20(Principle)]/20 = Payment
Blood Frenzy. The quipper has advantage on melee attack rolls against any creature that doesn't have all its hit points.
Bite. Melee Weapon Attack: +5 to hit, reach 5 ft., one target. Hit: 1 piercing damage.
I'd recommend using an online loan calculator - like this one.
If you set up a loan for $1,000 over 50 months, @ 1%, then loan payments are $20.43, and total interest paid is $21.39.
So, that's a tenday payment of 20.43 g.p. with the bank making 21.39 g.p. profit - or a Return on Investment ( ROI ) of 2%
Hardly seems worthwhile for the bank.
Cranking interest rates to 3%, payments are 21.30 g.p. per tenday, with total interest being paid being 65.5 g.p,. or an ROI of 6% - seems reasonable.
Steep rates of 10%, payments = 24.54 g.p. per tenday, and an ROI of 19%
Loan shark rates of 25% = tenday payment of 32.28 g.p. with a ROI of 38%
So - 50 tenday payments become ( for ease of play ): 21, 22, 25, or 33 g.p. per tenday, for 50 tendays.
How rapacious is CS&E Financial Services?
My DM Philosophy, as summed up by other people: https://drive.google.com/file/d/1rN5w4-azTq3Kbn0Yvk9nfqQhwQ1R5by1/view
Disclaimer: This signature is a badge of membership in the Forum Loudmouth Club. We are all friends. We are not attacking each other. We are engaging in spirited, friendly debate with one another. We may get snarky, but these are not attacks. Thank you for not reporting us.