How To Calculate Interest Rate?

You must know the period at which it is compounded - yearly, monthly, weekly, daily, continuously? But here are some calculators you can use.

http://www.martindalecenter.com/Calculators1A_1_Finance.html#FIN-BANKINT

I know that the subjects of posts does vary wildly sometimes but I think that economics is a bit farther out than usual.

May I suggest you try a forum that actually discusses money issues. Must be out there but as I do not realy find it that interesting I would not know where to guid e you to otherwise I would.

Best of luck with your querie.

Case491

It's like trying to fish for gold fish in a shark pond. Or was that the other way around? Why would one not go and see the banker? Distrust?

Best of luck with your querie.

Hello hussain358,

From the info you provide it looks like you need a daily interest calculator like this one. There are many, many interest/mortgage calculators around.

Excel has a dozen interst rate functions which will calculate what you need and all sorts of other useful stuff like due dates .

Looking at it mathematically, assuming your 1,00,000 = 100000, it ought to be 100000*1.035^(14/365) = 100132 Rs (BTW, what are Rs? not that it affects the answer).

I think this is the more logical calc, but they might say interest is 3.5%/365 per day, giving 100000*(1 + 0.035*14/365) = 100134 Rs.

But the lender may have special rules that lead to something different e.g. he might add interest only once per month, in which case you'd get none. Need to speak to him to be sure.

Cheers......Codey

in most cases most banks calculate only evry three months...

Soln:

PTR = I, where P= principal, T= time in Months, R = rate, I = Interest.

Therefore,

Interest for 7 days:

(1,000,000 x 7/30 x 3.5)/100 x 365 x 12 = 18.64Rs

For 14 days: (1,000,000 x 14/30 x 3.5)/ 100 x 365 x 12 = 37.29Rs

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