Interest Calculation Formula - Dominican Republic
There are two interest calculation methods in the installments:
| 1. | By entering the interests per year, the system calculates the interest per month, and, in this case, the interests per month are the correction factor of the installments. |
Calculation Formulas
= Interest per year
= Interest per month
M = 1/12
m = Period or number of months
MainVAlue = main value (or loan value)
Being:
| 2. | When the interests per year are not indicated, but the interests per month are, the system uses the interests per month information for the installments calculation. |
Example:
Thus, the system deducts the amount referring to each installment every month to the end of the payments.