OT - calculating credit-card interest/APR
Jon Lapham
lapham at jandr.org
Wed Sep 22 06:33:54 EDT 2004
jdebert wrote:
> This calculator:
>
> http://www.credit-card-calculator.com/calculator.php
>
> gives a result that seems like it's closer to what it should be.
Huh? To test the "credit-card-calculator" I put in a balance of $10000
at an APR of 10% with a payoff time of 24 months. It claims my monthly
payments should be $500, or a final payoff total of $12000. Surely this
is not correct.
Using GnuCash's very own shiney Financial Calculator (under the Tools
menu) I set Payment Periods to 24, Interest Rate to 10, Present Value to
10000, Future Value to 0, Compounding to Daily (365), Paments to
Monthly, End of Period Payments, and Discrete Compounding. Clicking on
"Calculate" for Periodic Payment tells me the payoff amount should be
$461.64, for a payment total of $11079.36. That sounds more reasonable.
The docs for the Financial Calculator are found in the "Loans" section
of the Concept Guide:
http://www.gnucash.org/docs/v1.8/C/gnucash-guide/loans_calcs1.html
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Jon Lapham <lapham at jandr.org> Rio de Janeiro, Brasil
Personal: http://www.jandr.org/
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