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Old 01-05-2011, 11:05 AM
Onomatopoeia is offline
Join Date: Jul 2005
Location: 小浜国
Posts: 6,550
It occurs to me that some (most?) people, me included, don't reinvest their earnings immediately, thereby experiencing a period of no interest being earned on the uninvested, inactive funds, which negatively impacts the amount of interest on the aggregate investment. As you only earn interest on funds that are actively invested in loans, and because you can only reinvest earnings that have reached the minimum $25 threshold, that 9.67% interest (or whatever your number is) you earn on your notes, is actually less than that.

A second thought. You're also not earning interest on funds invested during the period the loan is in a funding status, correct?

Last edited by Onomatopoeia; 01-05-2011 at 11:09 AM.