10 people join a coop, supply 10000 each. Money is put in a very low-risk investment, like a CD. Each [specified time period] the interest created by the investment goes to a different person. Rotating until each [specified time period] until everyone receives a payout of interest based on the original amount.
So the base amount would stay the same, the interest distributed would stay the same.
You could choose to leave your interest in, and be given a bigger return on the next cycle. Only people who chose to leave their interest in would receive the bigger return. People who chose not to leave in their interest would receive pay out as if the loan were the original size.
Writing it out, helps me realize that transparency in this kind of agreement would be essential.
Submitted April 17, 2017 at 12:24PM by mississippijones http://ift.tt/2nVkjDA
