Whose responsibility is it to figure the interest rate on a loan the lender or borrower?
I wouldn’t give him that sort of control. This is sorta a question of laziness. Why does it matter who does it and who checks it? He wants his money back…you don’t want to over pay…you should BOTH do it and then compare once a month when the balance is due. Typically, when you recieve a bill it states 500 due…then you pay it…however say you have 300 extra. You pay that for the principle. Well if I called up my lender and said “I’m looking to pay of the sum of my loan…how much do I owe?” They’re going to give me a number of my balance if I paid it off that day. They’ll also keep track on my monthly payments so techinically it’s his. However, your friend did you a nice thing by lending you this money. So…I’d say both of you. You should both figure out if payments are due what the interest is for every month…(have like cupons made) then have a additional interest fee or something calucalted w/ it. Both of you should do this…if you’re going to check what’s the big deal? Use
Normally the lender does all the math. However since this is a personal loan the normal rule may not apply. You have a very good friend to loan you $40,000. In all my life I have made 3 large personal loans to women and none of them have paid me back ( but one still might). Your friend is taking a chance.You should only pay him back by check.This will document each payment. Make a list of all payments. Pay him back as fast as you can. When you have paid $40,000 then do the math to calculate the amount owing. Be prepared to show him the math.
