Trade investments on the Exchange

Please see the example below:

Original Investment, i.e. Original APR:

£250
APR 9%
4 years

Received 1 repayment of £6.22, of which £1.87 is Interest and £4.35 is Capital

Outstanding Capital is £246.65.

Interest to be earned over the remaining 47 months is £46.75

Investor chooses to sell at APR 8.5%, i.e. Offered APR:

£245.65
APR 8.5%
47 months

Interest to be earned over the remaining 47 months is £44.02

Sale Price at 8.5%:

Difference between remaining interest of Original and Offered APR: £46.75 – £44.02 = £2.73

Capital outstanding + Difference in Interest: £245.65 + £2.73 = £248.38

The sale price of this investment at 8.5% is therefore £248.38

Quick Calculation:

Total repay – of which is interest = Capital outstanding (on the original investment)

Sale Price – Capital Outstanding = Interest Difference between Original and Offered APR

This difference in interest is the profit/loss that the buyer is earning by selling their investment at a lower or higher APR than the original.