Monthly update time! For my blog:
In the month of May, my blog earned $7.11, a nice increase from the $.87 I earned in April. Here are my Lending Club returns:
A quick description: my Net Annualized Return (NAR) is new because my Interest Received is $0.00. My loans are still young, my first interest payment is due on 6/7/2011. Once my loans start paying out, then I will have a better reading of my real NAR.
I have $5,000.31 in Lending Club (the $.31 was an initial transfer from my bank to Lending Club for verification purposes). So if I have received no interest, then why does the last column, Account Total, state $5,115.14? This total includes $100 I received for investing $2,500 in loans after being referred by a friend. The extra $14.83 of Accrued Interest is an approximation. It is about the amount of interest that I would have received if the interest paid to me was continuous instead of discrete, monthly payments. For accounting purposes, I prefer using the discrete, monthly payment way (if I can’t use the money, why should I account for it?). Once I have some good numbers I’ll show you how I account for my NAR next month.
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