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How to calculate interest payout for my investor?
Hey Guys,
I have an investor I need to pay and I want to make sure I am calculating interest correctly. Here is my example;
Loan had an initial 6 month period that was at 12% apr and then moved to 18%. Loan period is from 6/11/2018 - 2/26/2019.
Principal Invested $10,000
6/11 - 12/11 @ 12% (6 months or 183 days)
12/12-2/26 @ 18% (2 Months 14 days or 77 Days)
When calculating interest do you use the total number of days or do you use months and then days? This is not a big deal but numbers will end up being slightly off and I want to know what is correct. Not sure if I am doing this right but these are the results I got for interest payments with the two methods.
Days Method = $981.37
Months and Days = $1,023.29
What is right or are both wrong? Thanks for your help!!
Thomas