Loans and Debts

[Faith Augustin]

Yes, honestly - I was thinking of (in my uniquely maths-a-phobic way) having loans only be available in multiples of 10WP (so 1WP interest x cycle) and interest being applied EVERY cycle based on the starter amount, unless you've paid off a multiple of ten or.. something.

[Quio]

3. So, every 20WP in the bank, you get 1WP x season. So, 10WP in gets 1WP x cycle. I just put it that way so that we're more easily working on whole WP. Rather than.. (shudders) percentages and decimals.

Are you saying that anyone with savings from 20-39wp will earn 1wp in interest that season, anyone with savings from 40-59wp will earn 2wp in interest that season, etc?

If so, an equation for this would be
savings with this season's interest = savings x 1.05
with the resulting wp ALWAYS rounded down
and where 1.05 represents seasonal interest

4. Would we have it that, therefore, your loan of 20WP grows by 1WP x season and you have to pay that off first? Would the interest be on how much you CURRENTLY owe, or how much you started with? (that's always confused me, tbh)

We could make it that for each season you still have debt, you pay interest. So we wouldn't need to bother with cyclical or arc'ly interest rates in that case.

The equation would be the same as with savings. It would be
total debt owed = debt x 1.05
with the resulting wp ALWAYS rounded down
and where 1.05 represents seasonal interest

Using this method, if a person didn't pay their debt their debt would slowly increase over time.

Putting numbers to it, if someone who owed 60wp took out a loan and didn't pay anything back the first season, their debt would increase to
total debt owed = 60wp x 1.05 = 63wp.

If they didn't pay again the next season their debt would increase to
total debt owed = 63wp x 1.05 = 66.15wp rounded down to 66wp.

And on and on until they pay... or they default on their loan and thus get eaten by loan sharks (which is literal in Idalos, I'm afraid ).

Yes, honestly - I was thinking of (in my uniquely maths-a-phobic way) having loans only be available in multiples of 10WP (so 1WP interest x cycle) and interest being applied EVERY cycle based on the starter amount, unless you've paid off a multiple of ten or.. something.

Having loans in multiples of 10 works for me. I don't think it changes the math any. But remember that a 10wp loan wouldn't accrue any interest (because 10wp x 1.05 = 10.5wp, rounded down to 10wp). 20wp would have 2wp interest/cycle, 30wp would also have 2wp interest/cycle, 40wp would have 4wp interest/cycle, etc. Because the interest rate is 1wp/season (or 2wp/cycle) PER TWENTY wp owed.

5. Yep. Loan extensions. But - if a loan is outstanding and not paid off at the end of a loan period then the pc MUST use their wealth thread to pay it off?

That sounds fair.

So over the next day or two I'll get businessses and banks up on the wiki and get a mock up of a bank write up (unless there's a volunteer?).

I could write a quick mock up. It should be easy enough to write something as long as I'm allowed to base it on your Scalvoris Bank writeup.

[Faith Augustin]

3. So, every 20WP in the bank, you get 1WP x season. So, 10WP in gets 1WP x cycle. I just put it that way so that we're more easily working on whole WP. Rather than.. (shudders) percentages and decimals.

Are you saying that anyone with savings from 20-39wp will earn 1wp in interest that season, anyone with savings from 40-59wp will earn 2wp in interest that season, etc?

If so, an equation for this would be
savings with this season's interest = savings x 1.05
with the resulting wp ALWAYS rounded down
and where 1.05 represents seasonal interest

4. Would we have it that, therefore, your loan of 20WP grows by 1WP x season and you have to pay that off first? Would the interest be on how much you CURRENTLY owe, or how much you started with? (that's always confused me, tbh)

We could make it that for each season you still have debt, you pay interest. So we wouldn't need to bother with cyclical or arc'ly interest rates in that case.

The equation would be the same as with savings. It would be
total debt owed = debt x 1.05
with the resulting wp ALWAYS rounded down
and where 1.05 represents seasonal interest

Using this method, if a person didn't pay their debt their debt would slowly increase over time.

Putting numbers to it, if someone who owed 60wp took out a loan and didn't pay anything back the first season, their debt would increase to
total debt owed = 60wp x 1.05 = 63wp.

If they didn't pay again the next season their debt would increase to
total debt owed = 63wp x 1.05 = 66.15wp rounded down to 66wp.

And on and on until they pay... or they default on their loan and thus get eaten by loan sharks (which is literal in Idalos, I'm afraid ).

Yes, honestly - I was thinking of (in my uniquely maths-a-phobic way) having loans only be available in multiples of 10WP (so 1WP interest x cycle) and interest being applied EVERY cycle based on the starter amount, unless you've paid off a multiple of ten or.. something.

Having loans in multiples of 10 works for me. I don't think it changes the math any. But remember that a 10wp loan wouldn't accrue any interest (because 10wp x 1.05 = 10.5wp, rounded down to 10wp). 20wp would have 2wp interest/cycle, 30wp would also have 2wp interest/cycle, 40wp would have 4wp interest/cycle, etc. Because the interest rate is 1wp/season (or 2wp/cycle) PER TWENTY wp owed.

5. Yep. Loan extensions. But - if a loan is outstanding and not paid off at the end of a loan period then the pc MUST use their wealth thread to pay it off?

That sounds fair.

So over the next day or two I'll get businessses and banks up on the wiki and get a mock up of a bank write up (unless there's a volunteer?).

I could write a quick mock up. It should be easy enough to write something as long as I'm allowed to base it on your Scalvoris Bank writeup.

That all works for me. If you genuinely don't mind doing a mock up that would be great. My Scalvoris Bank write up is yours, of course! Thank you.

[Quio]

Okay, I'll try to have the mockup written tomorrow or the next day. I'm also looking into the stuff you posted in the feedback thread, so expect questions there as well. ^_^

[Pegasus]

Awesome - thank you to all involved - so much help!

[Quio]

Template for banks below. Remember we still need to put the information about grandfathering in debts somewhere, but I didn't think this was the place to put it.

Feel free to point out if I forgot anything or made some mistake somewhere. I feel like I made this... pretty fast, so it's quite possible.
extra line here

title of bank here

(image of bank here)

description of bank here

Rules:

1. It doesn't cost any Wealth Points to open a savings account.
2. Withdrawals, deposits, and all other services can be accessed at any branch of the bank.
3. You can make multiple withdrawals from your savings account per season. However, if you make any withdrawals, your seasonal interest may be affected.
4. This Location is open for you to post in: any and all withdrawals, deposits, loans, and interest calculations must be posted with time stamps below.

Bank NPC 1

(image of NPC 1 here;
image should be 150 x 150px)

Name:
Race:
Date of birth:
Title:
Skills:

Other information:

Bank NPC 2

(image of NPC 2 here;
image should be 150 x 150px)

Name:
Race:
Date of birth:
Title:
Skills:

Other information:

Savings accounts

By depositing your Wealth Points in a savings account here, you are agreeing to the rules of the bank (see Rules), and the bank is agreeing to pay interest on your savings.

Interest rates
Interest rates are added seasonally. It is up to you to apply for your seasonal interest; you may do so at the end of each season or on your own schedule, though you are advised to do so seasonally so as not to forget or to make mistakes.

Anyone can put Wealth Points in a savings account. However, only savings accounts with 20 Wealth Points (wp) or more will begin to earn seasonal interest; savings accounts with 19wp or less will not earn interest at all.

For every 20wp you have in your savings account, you will earn 1wp seasonally in interest. This equates more or less to a 5% interest rate. This means that

if you have 20-39wp in your savings account, you will earn 1wp in interest,
if you have 40-59wp in your savings account, you will earn 2wp in interest,
if you have 60-79wp in your savings account, you will earn 3wp in interest,
etc.

To determine the amount of interest you will earn for one season, use the equation
total savings = savings + (savings / 20)
where dividing by 20 represents your account's seasonal interest.

The resulting number of wp will always be rounded down to the nearest Wealth Point.

For example, someone with 32wp in their savings would have
total savings = 32wp + (32wp / 20) = 32wp + 1.6wp = 33.6wp rounded down, or 33wp in their savings after adding 1wp of interest.

And remember, parentheses before addition.

Or use the equation
total savings = savings x 1.05
where 1.05 represents your account's seasonal interest.

As before, the resulting number of wp will always be rounded down to the nearest Wealth Point.

For example, someone with 32wp in their savings would have
total savings = 32wp x 1.05 = 33.6wp rounded down, or 33wp in their savings after adding 1wp of interest.

The next season, they would have
total savings = 33wp x 1.05 = 34.65wp rounded down, or 34wp in their savings after adding another 1wp of interest.

Interest with withdrawals
If you have made withdrawals during the season, you should calculate your seasonal interest using the lowest number of Wealth Points you have had in your savings account during that time.

So, if someone had 50wp in their savings account, withdrew 10wp, and then deposited another 10wp, they would use 50wp - 10wp = 40wp when calculating their seasonal interest.

Bonus
If you don't make any withdrawals from your savings account for a full year, you will earn a bonus of 10wp. This bonus applies to saving accounts which hold less than 20wp.

Loans

By taking out a loan, you are agreeing to pay the bank the amount of Wealth Points you took out for your loan plus interest. The longer you do not pay back your loan, the more interest your loan will accrue.

If you do not make any payments towards your loan for a full year, your Seasonal Wage (earned via your seasonal Wealth Thread) will be seized by the bank until your loan plus interest is paid in full.

Interest rates on loans
For every season that you have a loan out with the bank, the bank will collect interest on your loan. The interest rate on loans is 1wp/season for every 20wp loaned out; this equates more or less to 5% interest seasonally. Loans can only be taken out in multiples of ten Wealth Points, so you may only take out a loan of 10wp, 20wp, 30wp, etc.

To determine the amount of interest the bank will add to your loan per season, use the equation
total debt owed = loan + (loan / 20)
where dividing by 20 represents your loan's seasonal interest.

The resulting number of wp will always be rounded down to the nearest Wealth Point.

For example, someone with a 150wp loan would owe
total debt owed = 150wp + (150wp / 20) = 150wp + 7.5wp = 157.5wp rounded down, or 157wp after adding 7wp in interest.

And remember, parentheses before addition.

Or use the equation
total debt owed = loan x 1.05
where 1.05 represents your loan's seasonal interest.

As before, the resulting number of wp will always be rounded down to the nearest Wealth Point.

For example, someone with a 150wp loan would owe
total debt owed = 150wp x 1.05 = 157.5wp rounded down, or 157wp after adding 7wp in interest.

The next season, they would owe
total debt owed = 157wp x 1.05 = 164.85wp rounded down, or 164wp after adding another 8wp in interest.

Job information

Jobs are available here. To apply for a job, see the city's Job and Wage Request thread.

Player notes

Put notes about the bank from the city's mod(s) to the city's players here.

Change log

Record any changes here that have been made to the bank.

Credit for this template goes to Quio, Pegasus, and Kingdom.

[Pegasus]

I've read it once, and it looks GREAT! I'll read it again tomorrow but thank you thank you!