Hi guys ha u doin ? .. I asked this question yesterday but it never showed up in the forums so i thought of posting it again...

I wanna calculate interest for a loan taken in 2007 ... Here's the scenario :

1- Loan amount : € 500,000

2- Final maturity : 3 years from the date of the first disbursement ( Disb date is 20th of Feb , 2007 )

3- Repayment : In four equal repayments of € 125,000 each ; 18 , 24 , 30 and 36 months after the date of disbursement ..

4- Interest rate : 20th Feb'07 - 20th july'07= 8.70288 ; 20th aug07 - 20th Jan08 = 9.40875 ; 20th feb08 - 20th july08 = 9.10563 ; 20th aug08 - 20th jan09 = 9.905 ...


As you can see in the scenario , for the first 18months € 125000 has to be paid , next 24months another 125000 and so on...


Does anyone know how to calculate the interest and principal ??... Your help is very much appreciated !!


Cheers, Raininman

Could anyone confirm if this is right :

The 1st repayment date is 20.8.08, so i calculated the interest from 20.2.07 to 20.8.08. Assuming there are 151 days from 20.2.07 to 20.7.07, interest for that period is $500,000 x 8.70288% x 151/365 = $18,002. Then the rate changes, so i calculated interest from 20.7.07 to 20.1.08 at 9.40875%. Assuming there're 184 days, the interest is $500,000 x 9.40875% x 184/365 = $23,715. The rate changes again, so did the same for 20.1.08 to 20.8.08 @ 9.10563%. Assuming 212 days, interest is $500,000 x 9.10563% x 212/365 = $26,444. So total interest to the 1st repayment date is $68,161. On this day, i should repay $125,000 + $68,161. After this 1st repayment, the principal drops to $375,000. Then i start all over again, calculating the interest from 20.8.08 to the 2nd repayment date, but this time i should apply the interest rate to $375,000, and not $500,000 anymore. You will end up paying more than $500,000 because of the interest.

Am i right ???

Cheers, R'man

Are you asking us to do your home work?