Loans - viable?

Day 1,970, 08:17 Published in Australia Australia by schofeild

Well hello there,

I, along with all of you, long for some kind of economy that challenges us and is competitive, viable, and engrossing. In an attempt to think of ways to make money/ invest efficiently I would like you to help me out and give me your thoughts. Feel free to shut me down if this isn't viable, but let me know if you are interested, or have suggestions.



Ok so my idea was simple, Players with a bunch of spare gold would invest their gold into a younger player's Trading Grounds.
The upgrades for trading Grounds take longer and longer to pay for itself as they get to the higher levels. So why not loan gold to a player so that they can reach lv 2 or 3. This will significantly increase the gold generation in Aus. The loaners would pay interest of 5 g for lv 2, 10 g for level 3 and 20 for both at once.
Level 2 is the more efficient investment, but will probably have less demand (unless we get an influx of new players directed here)

If a player does not have any upgrades it will take them 50 days to make 5 g. During a sale of 44% off buying the first upgrade will cost 11.2 g and will double their strength gain - 25 days to get 5 g. Therefore this would take 56 days to pay off lv 2 upgrade. (Plus 25 days for interest) = 81 days

Upgrading to lv 3 it costs 28 g and will result in 5 gold every 16.6 days. This would take 93 days to pay off (plus 33.2 days for interest) = 126 days

Upgrading both would cost 39.2 gold and would take 130 days to pay off (plus 66 days for interest) = 196 days

The advantage of doing both at once is that you get an extra 2.5 gold (approx) due to time after loan, and because your strength will be increasing much faster. This means getting battle hero and True Patriot achievements much easier. By the end of the loan your strength will be 3000 more than when you started, meaning you can be of more influence to wars and hit hard. This is 310 strength more than if you took each loan individually. Plus, from now on, every 50 days you get 15 gold (without taking into consideration other sources of gold)


Investors
The return on investment (profit):
Lv 2 = 0.446%
Lv 3 = 0.357%
Both Lv 2 and 3 = 0.51%



Let me know if you would be interested in this as a person taking a loan, or as a lender.
Also I want feedback. Raw hard feedback

TTFN,
The Scar