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interest calculation
whether interest calculated on no of days or no of months and whether it is 18% or 1.5 % per month
Replies (13)
As per my view it is calculated on No. of Days.. And the rate is 18% p. a.
But interests 18 % per annum, then how to calculate for month interest
Calculate on days
First calculate for one year then divide it by 365
Don't be confused the calculation of Interest... Just you ll follow the way...
Tax Liability (X) 18% (/) 365 (X) No.of Days later (after 20th)
If August liability amount is Rs. 10000 ,Payment on 25th September....
10000 x 18% = 1800 / 365 = 4.93 x 5 = 24.66 R. off 0.34 = 25....
Interest amount Rs. 25.....for 5days....
Tax Liability (X) 18% (/) 365 (X) No.of Days later (after 20th)
If August liability amount is Rs. 10000 ,Payment on 25th September....
10000 x 18% = 1800 / 365 = 4.93 x 5 = 24.66 R. off 0.34 = 25....
Interest amount Rs. 25.....for 5days....
Then we can divide that 18% into 18/12- 1.5 per month
Your interest will be approx same but the Correct way to calculate is as per Raja P M sir told..
we can calculate in this way by 1.5 per month or we have to 18% per month
18% per year.. Its not per month
thank you so much for your good information regarding interest calculation to Amit Kumar sir and raja p m sir
Your Welcome
You are welcome...
Interest calculations from the due date i.e. 1000*18/100*1/365= Rs. 0.49 per day approximately.
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