Bank overdraft account rate of interest calculation

This query is : Resolved

sathish (Querist)
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13 June 2023 Dear sir.,

if i am check to our bank rate of interest for monthly kindly provide any example formula with excel , my id -->sathishrajaj@gmail.com

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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06 July 2024 Example Calculation

Assume you have the following details:

• Principal Amount (Loan): Rs. 100,000
• Annual Interest Rate: 12%
• Loan Term: 12 months

Formula to Calculate Monthly Interest

1. Calculate Monthly Interest Rate:
• Formula: Monthly Interest Rate = Annual Interest Rate / 12
• In Excel: If Annual Interest Rate is in cell B2, use =B2/12
2. Calculate Monthly Payment using PMT function:
• Formula: =PMT(Monthly Interest Rate, Number of Payments, Principal Amount)
• In Excel: =PMT(B4, B3, -B1)

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