Remember back to your early years in school? You rehearsed this poem?
"Thirty days hath September,
April, June, and November,
All the rest have thirty-one,
Excepting February alone,
Which has but twenty-eight days clear
And twenty-nine in each leap year.
That poem will come in handy as you calculate the exact number of days for your loan with this strategy. (It will also work to determine which day of the year you were born on!)
Comments
Dear Deb,
Thank you for a very interesting article.
I am intrigued by your first paragraph concerning the two key dates of an interest period: The start date and the due date. What conventions or methodology are used to determine if an institution will count the day is due or the day before?
For instance,
- If an institution counts the day the loan is due, what convention /methodology is this?
- If an institution counts the day before the loan is due, what convention /methodology is this?
- I have also seen some calculations where institutions count don’t count the start date, but count the due date. Which convention /methodology is this?
It’s easier to explain using an example:
If I get a loan on 15 may 2012, with maturity date 5 June 2012. How many interest days are do I get in May and how many interest days in June using each of the 3 scenarios above and which one is the most commonly used?
Thanks
Adam.
Credit is certainly a type of credit card debt.
Such as most of debt applications, finance includes the redistribution associated with personal resources with time, between the lender and the debtor.
In the mortgage loan, the actual debtor at first
obtains or simply borrows some capital, referred to as the main, on the mortgage lender, and it’s responsible to pay again as well as pay back the same sum of money to the mortgage lender at a later time. Traditionally, the amount of money will be returned during normal car loan payments, or perhaps general monthly payments; within the annuity, every payment would be the exact quantity.