I want the formula for calculating flat rate when the bank gives the diminishing rate for a particular amount
2006-07-12 02:22:11 · 2 answers · asked by VIJAY ANAND 1 in Business & Finance ➔ Personal Finance
Normally and simplified:
1. Annual Loan rate / 12 months (or 365 days if interest accrues daily)
2. This amount * outstanding balance.
This does not take into effect the power of compounding, but for smaller loan balances/amounts the calc is almost accurate.
In truth, you need to get the formula for the so-called "per diem" amount of accruing interest. That will bang it on.
2006-07-12 03:21:09 · answer #1 · answered by Elias 2 · 2⤊ 0⤋
assume that if u availed a person loan 10000 and presntly if have a capacity to repayment once dont do this just repay 98000 or plus and after next few day you refund 2000 the bank will calculte interest for 2000 only means you should never go to refund if you have full payment capacity, in such case bank will calculte interest for whole amt
2016-03-27 02:22:35 · answer #2 · answered by Anonymous · 0⤊ 0⤋