Spreadsheet for calculating interest charges

[Guest]

Has anyone developed an Excel Spreadsheet for checking the interest charges
on a loan or cheque account? If so do you know what is the internationally
accepted way that they calculate the interest?

 

[Guest]

The formula would be very simple to write based on the logic for calculating
interest.

There are only three parameters; the interest rate, the currency and the
period.

For example:

If you borrowed $3000 for 7 days @ 5% the formula is:

$3000 x 5% divided by 360 multiplied by 7

The '360' is known as the day count basis and is usually 360 except for
interest on GBP which is 365.

Hope this helps.. David

 

[Guest]

THanks David, yes I have done that although I am using 365 days in my
calculations I know there is software out there that does it and they say it
is the only thing recognised by the banks but excel is such a handy program I
cant see why this wouldnt be accepted if it shows up an error. Mine so far
are showing some errors but not huge ones and I was just wondering what the
"internationally accepted" method of calculating interest was?

Many thanks for responding to me query.

Cheers
Kim