The value of the interest rate allows you to determine the profitability of the deposit or the amount paid for using the loan. Most people are faced with the problem of calculating interest on loans or deposits, and bank managers often do not bother with explanations. In this regard, it is necessary to know the methodology for calculating the interest rate.
It is necessary
calculator
Instructions
Step 1
Calculate simple interest on a bank deposit. This interest rate is calculated at the end of the term. For the calculation, it is necessary to multiply the value of the annual interest rate by the initial amount of attracted funds and by the number of days for the deposit. Divide the resulting value by the number of days in the given calendar year and by 100% to convert the expression from percent to currency.
Step 2
Calculate compound interest on the deposit. This method of calculation is used when the capitalization of interest is carried out within the term of the deposit. To calculate the amount of accrued interest, the initial contribution must be multiplied by the annual interest rate and by the number of calendar days in the billing period with interest capitalization. Divide the resulting value by the number of days in the given calendar year and by 100%.
Step 3
Calculate the interest rate for the annuity method of loan repayment. To calculate the total amount of the overpayment on the loan, you need to subtract one from the product of the annuity coefficient by the number of repayment periods, multiply the resulting value by the amount of the loan received.
Step 4
Find the interest rate for a differentiated loan repayment method. The calculation of interest in this case is carried out depending on the policy of the bank. If the bank determines when lending that there are 12 months in a year, then the accrued interest will be equal to the product of the annual interest rate by the loan balance in this month, divided by 12. If the bank assumes that there are 365 days in a year, then it is necessary to multiply the annual interest rate by the balance credit in a given month and for the ratio of the number of days in a month to 365.
Step 5
Use a loan calculator. This program can be installed on your computer or used on the Internet. Many sites provide the ability to calculate interest rates on loans and deposits online.
