Help calculating compound interest for student loan using Excel

DevCoder

CLAPTON wrote: »

most of the above is tosh

keep it simple to start then complicate it is you must

so

let A = current amount owing e.g. 10,000
let B = apr i.e. 1.5%
let C = monthly interest = A x B /12 e.g. 10,000 x 1.5%/12 = £1.25
let D = monthly payment e.g. 100
let E = end of month owing = A +C - D e.g 10000+1.25-100 = 901.25

so next line is

A(n) = E(n-1)

etc

this will be pretty good given I've no idea exactly how they work out months or payment dates etc

The above is not "tosh" because the OP stated that the interest was compounded daily which your calculation doesnt allow for.

The OP then states that is applied monthly which would be a accrued daily, applied monthly which is what I stated in Post #2 (which is the same as your calculation).

CLAPTON

krisdorey wrote: »

The above is not "tosh" because the OP stated that the interest was compounded daily which your calculation doesnt allow for.

The OP then states that is applied monthly which would be a accrued daily, applied monthly which is what I stated in Post #2 (which is the same as your calculation).

OK, we understand the OP post differently

I though the OP said but it can be read several ways

Flex79 wrote: »

I have been told the interest is calculated daily, based on a daily rate e.g. 0.009438572%, and it is then applied monthly, and it is compound interest.