Resend: Loan payments vs financial calculator mismatch

Geert Janssens janssens-geert at telenet.be
Mon Oct 19 17:21:51 EDT 2009


On Monday 19 October 2009, you wrote:
> Geert Janssens <janssens-geert at telenet.be> writes:
> > I never got an answer on the question below and I'm still having trouble
> > with this. So I take the liberty to resend my original message:
> >
> > Hi,
> >
> > I am trying to setup a scheduled transaction for a loan.
> >
> > At this moment I didn't receive the full table of payments from my bank
> > yet, but the first payment has been made.
> >
> > Using the financial calculator in GnuCash, I find that the numbers fit:
> > I have 12 payments, for the amount that I loaned, with the interest we
> > agreed, the monthly payment calculated very closely matches what the bank
> > charged me.
> >
> > However, if I try to set this up using the Mortgage and Loan druid, I end
> > up with one payment less (11 instead of 12) and the amount per payment is
> > too high.
> >
> > Just for reference:
> > The loan is:
> > Amount: 4.000 €
> > Intrest: 6.6% (or near to it, I didn't get the final number yet)
> > To be paid in 12 monthly payments of 343,53 € each.
> >
> > The financial calculator gets very close to this.
> >
> > However the druid gives me 11 monthly payments of 345,37 € each.
> >
> > Where's the difference ?
>
> Sounds like a fencepost error..  Not sure who's error it is.
>
I'm not familiar with the term "fencepost" (I'm no native English speaker). 
However, since the financial calculator gives me a result very close to what 
my bank gives me, I tend to assume the financial calculator is doing things 
properly, while the loan payment druid is having the error.

Regards,

Geert


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