Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What types of interest calculation methods does TEA support?

April 26, 2017calculation methods support tea types

0

Posted

What types of interest calculation methods does TEA support?

1 Answer

0

Posted

TEA uses the common interest formulas for simple interest, compounded interest and mortgage interest. You can also download a PDF with details about TEA’s interest calculation methods (53K). Simple Interest calculation: Interest = Principal x Annual Rate of interest x Time elapsed =x (days) / y (days in year) Compounded Interest Calculation: Loan balances are calculated by determining the future value of the loan. The future values are calculated using the equivalent daily interest rate id. Mortgage Interest Calculation: Future Value of Loan = Loan Amount + (Loan Amount x Id x cumulitve days).