
November 06, 2011, 03:58:03 AM 

I have 0% on balance transfers for 12 months, with a 3% upfront fee. Due to a minimum fee, the loan needs to be at least $350 to make this economical. I am willing to put up $150 towards that if we can find a few others to come up with the other $200. The other lenders would send me bitcoins and I would do a balance transfer from your card to mine. The 3% fee will be added to the principal and the monthly interest will be 0.5%. Assuming exactly $350 is raised, the payments come out as follows (we can round to the nearest penny):
31.844166666666666 31.693958333333327 31.54374999999999 31.393541666666653 31.24333333333331 31.09312499999998 30.94291666666664 30.7927083333333 30.642499999999963 30.492291666666617 30.34208333333328 30.191874999999936 total: 372.21624999999966 [1]
So, Littleshop pay 3% up front + 6% annually; bitcoin investors make 6% and the banks only get 3%.
If you would like to help me help Littleshop, please pm me how much you are willing to commit, or reply below. Each payment will be divided proportionally by contributed capital (my contribution will include the 3% fee, so your share will be "your contribution"/("total loan" + "balance transfer fee"), and my share will be (150 + "balance transfer fee")/("total loan" + "balance transfer fee")).
Of course, this is all assuming Littleshop agrees to these terms.
begin_edit Of course, payments will be converted to bitcoins. end_edit
[1] Payments calculated as follows:
def payments(n) amount = 350 # balance transfer fee p = amount * 1.03 r = 0.005 months = 12
total_payment = 0 Range.new(1,n).each do i # payment is remaining principal / months remaining # plus monthly interest payment = p/(monthsi+1)+p*r puts payment # new principal is old principal plus interest minus payment p = p*(1+r)  payment total_payment += payment end
puts "total: #{total_payment}" end
payments(12)
