I remember as a kid, about 12, loaning my less-mathematically-astute younger brother $4, at 10% interest per day, compounded daily. I remember gloating about how much money he was going to owe me. I was going to be RICH, mwuahh hah hah!!
My Mom told that loan sharking was illegal, and my Dad told me that contracts with minors were not enforceable. My brother I think borrowed some money from one of his friends (on much more favorable terms), paid me back with one day’s interest, and never borrowed money from me again.
I remember as a kid, about 12, loaning my less-mathematically-astute younger brother $4, at 10% interest per day, compounded daily. I remember gloating about how much money he was going to owe me. I was going to be RICH, mwuahh hah hah!!
My Mom told that loan sharking was illegal, and my Dad told me that contracts with minors were not enforceable. My brother I think borrowed some money from one of his friends (on much more favorable terms), paid me back with one day’s interest, and never borrowed money from me again.
I did this too to a schoolyard kid, except he repaid me the next day, so it was kind of deflating.