[GNC] Working with compound interest on varying amounts

[Hal Vaughan]

So GnuCash doesn’t do this kind of thing?

If it’s off by a cent or two, I can deal with it, but the problem is I use one credit line for multiple projects at a time, so I have to be able to easily work out the interest for each individual project.

Hal

> On Dec 3, 2018, at 7:03 AM, David T. <sunfish62 at yahoo.com> wrote:
> 
> Hal,
> 
> Most such calculations are devilishly difficult to represent with 100% accuracy, which is why I have always opted to base my transactions on the statement, rather than try to anticipate what the finance company is going to come up with. 
> 
> David T 
> 
> 
> On Mon, Dec 3, 2018 at 12:10, Hal Vaughan
> <hal at hal.dance> wrote:
> For the past few years, for my business that is mostly about renovating or restoring houses and reselling them (not flipping - this work takes time), I’ve used a Python library I wrote myself to handle accounting.  It was basically made up mostly of stuff I had, with a few new things added in.
> 
> I would like to switch over to GnuCash.  Luckily, since I’m at a slow point and between projects, I can do that without worrying about converting old data for older LLCs and projects.
> 
> There’s one issue I’m not sure can be handled by GnuCash, so I’d like to find out about it before trying to switch over.
> 
> I use a line of credit.  Luckily the interest rate is basically constant.  (There’s a slight flux, but not much.)  The problem is its compounded and, of course, every time I withdraw money from the credit line or pay any back, the principal amount changes.  I’m hoping, at this point, people are saying, "Oh, yeah, just do this…."
> 
> But just in case there’s a need for clarification, if I withdraw $50,000 to purchase a house on January 1, then, on the 15th, withdraw $10,000 for roofing work, need to figure out the total owed to that credit line on 1/31, and the interest rate is 3%, then I have to figure compound interest on $50,000 at 3% from 1/1 to 1/15.  Then I have to add $10,000 to that amount to calculate the interest on the $50,000 plus 15 days of interest, plus $10,000, plus the interest from the 15th to the 30th, at 3%, to get a clear number for what I owe.
> 
> Can I have this done automatically on an account?  If not, how can I easily keep track of this in GnuCash?
> 
> 
> Thank you!
> 
> 
> Hal
> _______________________________________________
> gnucash-user mailing list
> gnucash-user at gnucash.org
> To update your subscription preferences or to unsubscribe:
> https://lists.gnucash.org/mailman/listinfo/gnucash-user
> If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information.
> -----
> Please remember to CC this list on all your replies.
> You can do this by using Reply-To-List or Reply-All.