The Easiest Way To Calculate Your Credit Card
Let’s assume that you get a 100 $ loan with 12 months at 1% interest per month. Your monthly installments are calculated as 8, 88 $. One month after you receive the loan, you will be owed 1 $ interest of 100 $. The first installment fee of $ 8, 88 will be paid as 1 $. The remaining $ 7.88 is deducted from your debt.
Loan Interest Calculation Formula
The Interest value to be used in the form is the interest rate, not the percentage of interest. For example, if the monthly interest rate is 1%, it should be 0, 01 in form and 0, 0079 in 0, 79%. If the payments are made every three months instead of once a month, the rate to be used must be three months simple interest, three times the given monthly rate.
Equal installment plans may not always meet your needs. For example, you may be receiving a bonus every 3 months, so you can pay one more installment every 3 months. Or, you can use your collective money, which will go into hand after 1 year, to repay the loan in one go. For such cases, institutions offer calculation options such as interim payment, incremental payment, declining payment, balloon payment. However, the real need for life may require more complex and more flexible planning.