Has anyone developed an Excel Spreadsheet for checking the interest charges
on a loan or cheque account? If so do you know what is the internationally
accepted way that they calculate the interest?

The formula would be very simple to write based on the logic for calculating
interest.

There are only three parameters; the interest rate, the currency and the
period.

For example:

If you borrowed $3000 for 7 days @ 5% the formula is:

$3000 x 5% divided by 360 multiplied by 7

The '360' is known as the day count basis and is usually 360 except for
interest on GBP which is 365.

Hope this helps.. David

"Kimbo" wrote:


Has anyone developed an Excel Spreadsheet for checking the interest charges
on a loan or cheque account? If so do you know what is the internationally
accepted way that they calculate the interest?

THanks David, yes I have done that although I am using 365 days in my
calculations I know there is software out there that does it and they say it
is the only thing recognised by the banks but excel is such a handy program I
cant see why this wouldnt be accepted if it shows up an error. Mine so far
are showing some errors but not huge ones and I was just wondering what the
"internationally accepted" method of calculating interest was?

Many thanks for responding to me query.

Cheers
Kim
--
Kimbo


"Dreid" wrote:

The formula would be very simple to write based on the logic for calculating
interest.

There are only three parameters; the interest rate, the currency and the
period.

For example:

If you borrowed $3000 for 7 days @ 5% the formula is:

$3000 x 5% divided by 360 multiplied by 7

The '360' is known as the day count basis and is usually 360 except for
interest on GBP which is 365.

Hope this helps.. David

"Kimbo" wrote:


Has anyone developed an Excel Spreadsheet for checking the interest charges
on a loan or cheque account? If so do you know what is the internationally
accepted way that they calculate the interest?