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Anonymous
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The loan manager interest calculation for 365/360 compute period is not correct?

I tested the loan manager with a loan: The borrowed amount is $10000.00, term is 6 months, origination date is Dec/1/2018, due date of next payment is Jan/1/2019, payment amount is $2000.00, payment period is monthly, interest rate is 36%, compounding period is Exact Days, computing period is 365/360. The interest amount that loan manager shows for the first payment is $304.17. I don't think this is correct. My calculation is like this: the daily interest rate = 36%/360 = 0.001, so the interest for the first payment should be 0.001 * 10000.00 * 31 (days) = $310.00. Am I correct?

 

Thanks.

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Community Champion

The loan manager interest calculation for 365/360 compute period is not correct?

Using http://www.amortization-schedule.info/calculator I get a monthly payment of $1845.98 and first month interest is $300 (36% of $10,000 divided by 12 is exactly $300) A payment of $2000/month will retire the loan with a final 6th payment much less than the $1846

 

Loan Manager rarely will match exactly what an actual bank calculates that you owe so in the end always refer to statement instead.

 

 

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Anonymous
Not applicable

The loan manager interest calculation for 365/360 compute period is not correct?

http://www.amortization-schedule.info/calculator calculates interest for Monthly compounding period. What I want is interest calculation for Exact Days compounding period and 365/360 compute period. Can anyone show me this interest calculation?

 

Thanks.

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