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Is there a statute of limitations to collect for repayment of a loan?

Is there a statute of limitations to collect for repayment of a loan?

Q: What would you get if you lend your cousin $100 to be paid back in a year at 5% interest?

If you lend $100 at a 5% interest rate, you would receive $105 when the loan is repaid in one year. This includes the original amount plus $5 in interest. A written agreement can help clarify the terms.

Q: Is 5% interest rate a lot?

A 5% interest rate is generally considered moderate, depending on the type of loan and current market conditions. For personal loans or credit cards, rates can be higher. It's essential to compare rates with other available options to determine if it's reasonable.

Q: What is the simple interest on $1000 at a rate of 5% per annum for 3 years?

The simple interest on $1000 at a 5% annual rate for 3 years can be calculated using the formula: Interest = Principal × Rate × Time. So, Interest = $1000 × 0.05 × 3 = $150. Therefore, the total interest earned would be $150.

Q: What is the present value of $100 paid two years from now when the interest rate is 10 percent?

To find the present value of $100 due in two years at a 10% interest rate, use the formula: Present Value = Future Value / (1 + r)^n. Here, Present Value = $100 / (1 + 0.10)^2 = $82.64. This means $100 received in two years is worth about $82.64 today.

Full question:

I loaned a friend $15,000 five and a half yrs ago with repayments to commence September of 2006 at a min of $250/month. She paid back a total of $2500 from September of 2006 thru March of 2007 then stopped due to financial problems. Can I sue her even tho the original loan is more than the 4 years statute of limitations when repayment is only 11 months lapsed?

Category: Debts and Credit
Subcategory: Promissory Notes
Date: 04/07/2025
State: National

Answer:

When a debtor is in default of payment, legal action may be taken to collect amounts due. The statute of limitations is typically calculated from the date the missed payment was due. In Georgia, the statute of limitations on a written contract or promissory note is 6 years.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What if you lend your cousin $100 to be paid back in a year at 5% interest?

If you lend your cousin $100 at a 5% interest rate, they would owe you $105 at the end of the year. This is calculated by adding the $5 interest to the original loan amount. It's important to have a written agreement to outline the terms of repayment and interest.

What would you get if you lend your cousin $100 to be paid back in a year at 5% interest?

How to calculate payments on a loan?

To calculate loan payments, you can use the formula for an amortizing loan, which considers the principal, interest rate, and loan term. The monthly payment can be calculated using the formula: M = P[r(1 + r)^n] / [(1 + r)^n – 1], where M is the monthly payment, P is the loan amount, r is the monthly interest rate, and n is the number of payments.