I got a $319 (2,00,000INR) loan from xxxxx bank on 2009 with the interest rate of 6% for 5 years for my own business investment. Now my simple interest in this bank is $125 (7816INR). But i have tried simple interest calculator to check rate of interest for my bank loan amount. It shown just $96 (6000INR) as interest rate for 5years. I have asked that bank manager to clarify the doubt on interest rate $125, but no response. Is the bank's interest rate is ryt?
Kindly explain me the calculation on this. It would be most grateful.[/url]
Sat Mar 28, 2015 1:11 pm
Publius Preferred Member
Cash: $ 31.00
Joined: 12 Oct 2012
By my calculation, that isn't a simple interest loan. You are right, if you use a simple interest definition, your interest should be ~$96 for the full term. However, if you compound annually and capitalize the interest for the full term, it comes out to ~ $125 interest for the full term.
Mon Mar 30, 2015 3:24 am
JackClark New Member
Cash: $ 1.40
Joined: 14 Apr 2015
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