Interest calculation

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Borrowing Rs. 10 lacs. Interest Rs. 1.20 lacs upfront, Repayment 16 weekly instalment of Rs.0.60 lacs and 17th one of Rs. 0.40 lacs. Calculate the interest charged.
Replies (2)

Total Installment Value = 10,00,000 

Upfront amount = 1,20,000

So, Total interest charged for 17 weeks comes to 1,20,000

and the Interest rate comes to 13.5325%.

File attached for your reference.

Sir why have calculated interest for 14 days, 21 days, 28 days.... and so on.

FOR EXAMPLE -

WEEK 2 interest should be calculated only for 7 days on 880000. WEEK 1 should not be included in week 2 calculations i.e 1X7 and not 2X7. 

Please explain.

regards

karamvir ahuja ( karamvir.ahuja @ yahoo.in ) 


CCI Pro

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