Key in the Loan details of your choice to see the results

Impact of repayment taken to pay Interest fully first    XL

Monthly Compounding:(Australia, USA, UK, Canada Etc:

                                     MONTHLY EXCEL  approx 7MB

3 monthly (India,Sri Lanka etc)      QUARTERLY EXCEL  approx 3.5MB

6 monthly In Australia ANZ Bank has lent to some people in year 2002, produced evidence in court)

                                    HALF YEARLY EXCEL approx 3.5MB

Annually                             ANNUALLY EXCEL approx 3.5MB

ALL  ABOVE A SINGLE FILE                     Download  approx 14MB. 

Please Note:

When the file opens,  Blue cells for your agreed rate. Red cell for increase in interest rate. Other cells are protected cells.

If changed results are not displayed, please press 'F9' on your key board (this will ensure that MS Excel does the calculations 'automatically').

At cell 'B4/B5/B6' enter 'y' as appropriate. Cell 'B7', 'B8', 'B9' and 'B10' enter appropriate numbers from your loan contract.

Enter the interest rate as "7.5" for a 7.5% p.a. (not as "7.5%" or as "0.07").

You can see the results below as follows;

At 'B20', the equivalent simple interest rate appears.

At 'C20' The total Simple interest payable over the term of loan.

At 'D20' the number of years in which you would have repaid the entire loan and interest, if Simple interest were charged.

'F20' shows the interest on interest

'G20' Shows the total repayment of principal and interest (compound interest), if the interest RATE REMAIN UNCHANGED.

If you would like to see what a 0.25% (or any other) increase in interest rate would do to you;

At 'B10' enter the increase in rate.

OR at 'B11' enter the current interest rate in your country.

At 'I20" find the equivalent Simple interest rate.

At "J20" find the total money you would have paid for the entire term as per loan contract.

At 'K20' how much YOU STILL owe to the lender, after making your regular repayment for the entire period in the loan contract!!!

Firstly, as a planned conspiracy or coincidence, compound interest is not adequately dealt in class rooms, at least in the institutions i was either a student or teacher.

Secondly, due to the notion that only when the formula above is used in calculations, it is taken to have the interest compounded. But the concept of compound interest is forgotten by common people but used very efficiently and in a very dubious manner by Lenders/Lending institutions for over 50 years.