Ratio of diminishing interest rate per month? - calculate diminishing rate of interest
By lower interest rates for the calculation can be done?
Saturday, January 30, 2010
Calculate Diminishing Rate Of Interest Ratio Of Diminishing Interest Rate Per Month?
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1 comments:
Hello everyone,
Interest rate is calculated on an annual basis, reduction, reduction of the shortening of the daily or monthly basis.
Daily average, by reducing the time a payment the next day to make interest is calculated on the principal balance. This will now be smaller because you have paid an amount. So, if you pay a portion of a Director of, say, 10,000 rupees and 3,000 rupees to pay now, the interest rate will change from tomorrow and will be calculated on the balance of Rs 7000th
On a monthly basis, imply that the reduction in the amount of principal you pay each month in the calculation of interest rates by month deducted. Thus, the rate of change in the next month and is calculated on the balance Rs 7000th
The annual reduction in the total paid up capital by the end of the year is deducted in the calculation of interest rates for the next year. Here you will continue to find interest in Rs 10,000 to the end of the year paid.
Calculations of the daily balance in a reduction takes place mainly in credit cards, where each time a paymentis made, the principal shall immediately deducted. In the case of the monthly declining balance, will take place next month at the reduction of annual base next year. The golden rule: The more frequently it will be better.
Hope this will clarify your question ..
Satish
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