I know that interest accures over a period of time. Say my loan is due on the first of every month but I pay it on the tenth instead. It's not late but interest has built up a little more because I didn't pay on the first.
What is the formula for figuring this out?
2007-07-11 21:36:40 · 5 answers · asked by Silly Girl 5 in Business & Finance ➔ Personal Finance
It will be slightly different for each month you calculate it because the balance is always different when you make the payments.
Lets make the following assumptions for the calculation:
loan balance: $200,000
loan rate: 7%
of course we are not factoring in insurance & tax for this.
200,000 x .07 = $14,000 interest for the year simple interest. Remember you will have to adjust the balance each time you do it because it will be different every month
$14,000/365= $38.36 daily interest. That is the amount you are charged everyday that your balance is $200,000.
$38.36x 10=$383.60. That is your 10 day interest payment.
I am sure there are probably other calculations to use & different techniques to find that I am off by dime or so, but that is pretty much the jist of it.
2007-07-12 02:12:54 · answer #1 · answered by ricks 5 · 0⤊ 1⤋
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2007-07-11 22:10:35 · answer #2 · answered by Rang and B 2 · 0⤊ 2⤋
If the payment is due on the 1st, a payment made on the 10th IS late, there may not be a late fee, but the payment IS late. There is NEVER a formula for determining ANY companies policy. You could calculate the daily interest and compare that to the portion of your payment actually applied to interest. Calling and asking would probably be easiest.
2007-07-12 02:15:12 · answer #3 · answered by STEVEN F 7 · 0⤊ 1⤋
Sorry, but I don't know. You may want to ask a bank loan officer.
2007-07-12 03:36:39 · answer #4 · answered by Anonymous · 0⤊ 1⤋
man idk just go to da bank and ask them about it
2007-07-13 21:09:50 · answer #5 · answered by justme 3 · 0⤊ 1⤋