+0  
 
0
40
1
avatar

In May (31 days), the loan payment is 603 €, out of which the capital portion is 51,0 % and the rest is interest for the loan capital. Calculate the annual interest rate, when after the payment the remaining balance is 61660 €.

Guest Mar 8, 2017
Sort: 

1+0 Answers

 #1
avatar
0

In May (31 days), the loan payment is 603 €, out of which the capital portion is 51,0 % and the rest is interest for the loan capital. Calculate the annual interest rate, when after the payment the remaining balance is 61660 €.

 

603 x 51% =307.53 - This the principal portion of the payment.

603 x 49% =295.47 - This is the interest portion of the payment.

61,660 + 307.53 =61,967.53 - This is the balance of the before the principal payment.

295.47 / 31(days in May) =9.53 - This is daily interest on the loan.

9.53/61,967.53 =0.000153811 - This is the DAILY interest rate.

0.000153811 x 365 x 100 =5.6141% - This is the interest RATE componded daily.

5.6141% compounded daily =5.7742% -  EFFECTIVE annual interest rate

Guest Mar 8, 2017

10 Online Users

avatar
avatar
We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners.  See details