Calculation of interest for car loan

Question

I was sanctioned a car loan (1,47000) in June 2007 with repayment in 150 installment @ 980 per month. My last installment was due in Jan2020. My query is regarding the calculation of interest by diminishing balance method or by a formula used by administrative staff in my office ie n(n+1)/2*Installment/12*ROI/100. The difference in interest in the two methods is about Rs 1500 in my case. Please clarify which method is to be used for calculation. Thanks

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Sanjiv Bhatnagar 2 years 2020-03-04T11:25:31+05:30 1 Answer 342 views 0

Answer ( 1 )

    0
    2020-03-04T22:22:24+05:30

    Interest should be purchased at the time of percentage rate. First month interest should be calculated for full mon after the recovery of the first installment credited and from the third month first instalment should be deducted. For last installment interest also to be recovered.

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