How do you calculate day to day interest on a $5000.00 loan?

Answer 1

At 5% = (5,000 divided by 100 X 5) divided by 365. You then add this interest to the principal, say 5,050 and do the same again for the second day and so on............

Answer 2

The method of calculating interest is as follows:

The unpaid balance multiplied by the apr percent ..... then divided by either 360 or 365 ..... then multipled by the number of days in the billing cycle.

The 360 or 365 is the number of days in a year. The FRB, FDIC etc allow either the use of 360 or 365 in that calculation.

This is the method to find out the amount of interest charged on all debts.

Answer 3

is it simple interest or compound interest? Are they using a 360 day year, 365 day, or 366 day?

for simple interest, just take the interest rate expressed in decimal format, divide it by the number of days in the year (usually 365) then multiply the product by the amount of the loan.

if it's compound interest, you do the same as the above, except that you add each day's interest to the loan amount, so the loan balance keeps increasing.

Answer 4

Multiply the interest rate by the dollar amount of the loan (i.e $5,000). That is your annual interest. Divide that by 365 for the per diem. (Daily interest)

Answer 5

Relay Love is correct for an approximate per diem. However, go to the calculators on bankrate.com and you can compute your interest/finance charges for whatever amount you want.