Hi all.
Am I correct that a suitable formula to calculate mortgage interest for outstanding principal P; at rate I% APR over N days when the interest is charged on a daily basis is:
P*(((I/100)/365.25)*N)) assuming that interest is charged at the end of the month (N days)
and where a payment Pp is made in the middle of a month on day M then the interest charged would be:
P*(((I/100)/365.25)*M)) + (P-Pp)*(((I/100)/365.25)*(N-M)))
With thanks.
Am I correct that a suitable formula to calculate mortgage interest for outstanding principal P; at rate I% APR over N days when the interest is charged on a daily basis is:
P*(((I/100)/365.25)*N)) assuming that interest is charged at the end of the month (N days)
and where a payment Pp is made in the middle of a month on day M then the interest charged would be:
P*(((I/100)/365.25)*M)) + (P-Pp)*(((I/100)/365.25)*(N-M)))
With thanks.