- If you need clarification, ask it in the comment box above.
- Better answers use proper spelling and grammar.
- Provide details, support with references or personal experience.
Tell us some more! Your answer needs to include more details to help people.You can't post answers that contain an email address.Please enter a valid email address.The email address entered is already associated to an account.Login to postPlease use English characters only.
Tip: The max point reward for answering a question is 15.
interest is interest
fixed is calculated yearly on the principle and is paid 365 days time
variable changes and is calculated daily ( 1/365 part of the interest rate ) and added to the remaining principle monthly
so if you have a loan of $1000.00 on fixed interest of 10% , regardless of how much you have repaid in a 12 month period , it is 10% of the principle loaned
with a variable interest the interest rate could be 10% today, 15% in 2 months time or 6% later on
it is variable
to add to that it is calculated on a daily basis (1/365 of 10%) and added to the principle left after receiving a payment on the loan
so for a $1000.00 the interest is added to that principle at the end of the month if there is no loan repayment or is added to the principle balance after a payment
the difference is that a variable interest rate loan will allow you to save money if you pay off well before the period of the loan but will add almost 2 to 3 times the loan if you pay the absolute minimum for the period of the loan
a fixed rate is where you know exactly the total interest to be paid at the end of term
Credit union. Credit unions offer low interest rates and a variety of outstanding borrower benefits but you should be a members. Unity One Credit Union in Texas (Unity One Student Loans) was my choice.
You are able to switch to a principal and interest amortizing facility in order to a pursuit-in-advance facility in the finish of the fixed rate of interest term. When the payment type is transformed throughout the fixed rate of interest term, break costs might be incurred.
A cash advance is a service provided by most credit card and charge card issuers. The service allows cardholders to withdraw cash, either through an ATM or over the counter at a bank or other financial agency, up to a certain limit. For a credit card, this will be the credit limit (or some percentage of it).
Cash advances often incur a fee of 3 to 5 percent of the amount being borrowed. When made on a credit card, the interest is often higher than other credit card transactions. The interest compounds daily starting from the day cash is borrowed. The POWER OF BLOG
The function in Excel for calculating EMI is not EMI but PMT. It requires minimum three arguments. They are 1. Rate of interest (Rate), 2. Number of periods (Nper) and 3. Value of loan or present value (Pv) in that order, that is, PMT (Rate, Nper, Pv)
If you want to find EMI for 1 lakh at 10% annual interest for 10 years you enter the following in one of the cells:
= pmt(10%/12, 10*12, 100000)