simple interest formula in excel

V NARENDRAN · 08-03-2005, 01:05 AM

I would like to know the formula to be used for calculation of Simple
interest in excel . For compount interest it is Fv as i gather

**Bryan Hessey** · 08-03-2005, 07:13 AM

There are many formula for calculating compound interest by the month or by the day etc.

The calculation for simple interest is the amount of loan outstanding times the interest rate for the period, which, for a 10% rate charged monthly would give you
Loan outstanding * 10 / 1200

However, you might need to check the law in your country, and then ensure that no interest is charged on any previous interest debited.
This could occur if a payment were not received for a period, or if a payment of less than the interest for the period was received.