Post by Deleted on Feb 22, 2017 17:09:43 GMT
I am possibly working it all wrong, but I am confused about how interest is calculated.
The following example, is taken from account statement I generated today and uses a random loan I picked upon. The values are very small and consequently non-significant, but please help clarify.
Processing Date Booking Date Type Description Loan Number amount
22/02/2017 16:37 22/02/2017 00:00 REPAYMENT PRINCIPAL 03-136092 61.1552
22/02/2017 16:37 22/02/2017 00:00 REPAYMENT INTEREST 03-136092 0.0972
17/02/2017 00:26 17/02/2017 00:18 SCHEDULE INTEREST 03-136092 0.3892
24/01/2017 12:16 24/01/2017 12:15 BUY_SHARES PRINCIPAL 03-136092 -61.1552
Looking at the loan, with 10% interest per annum, limiting all values to 6 decimals, with rounding of from 5th decimal
Daily Interest = 0.000274 % (10%/365 days=0.00027397260273973%)
Principal amount = 61.1552
Loan invested for = 30 days
Interest expected = 0.502696 (£61.1552*0.000274%*30 days=0.502695744)
Interest achieved = 0.4864
Interest delta = -0.016296
Can someone please help explain the delta?
The following example, is taken from account statement I generated today and uses a random loan I picked upon. The values are very small and consequently non-significant, but please help clarify.
Processing Date Booking Date Type Description Loan Number amount
22/02/2017 16:37 22/02/2017 00:00 REPAYMENT PRINCIPAL 03-136092 61.1552
22/02/2017 16:37 22/02/2017 00:00 REPAYMENT INTEREST 03-136092 0.0972
17/02/2017 00:26 17/02/2017 00:18 SCHEDULE INTEREST 03-136092 0.3892
24/01/2017 12:16 24/01/2017 12:15 BUY_SHARES PRINCIPAL 03-136092 -61.1552
Looking at the loan, with 10% interest per annum, limiting all values to 6 decimals, with rounding of from 5th decimal
Daily Interest = 0.000274 % (10%/365 days=0.00027397260273973%)
Principal amount = 61.1552
Loan invested for = 30 days
Interest expected = 0.502696 (£61.1552*0.000274%*30 days=0.502695744)
Interest achieved = 0.4864
Interest delta = -0.016296
Can someone please help explain the delta?
