SIMPLE INTEREST BIWEEKLY LOAN (SIBW)

moneyplays

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Jul 2, 2008
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I am seeking a program to calculate a (SIBW) simple interest biweekly loan to see it calculated on a spread sheet in a amortization form.I guarantee its out there but the Banks say no.If I can do it long hand,I'm sure it can be set up and done quicker. Pc's work faster than humans. HELP!!!! Please Denote Below as an EX:

What I know to be true,as following:(PRINCIPAL BALANCE X INTEREST RATE X DAYS) /365(366LEAP YEAR) = INTEREST.OK LETS START WITH A EXAMPLE PROBLEM:
DATA FOR INPUT AS FOLLOWING:Loan $100,000
Rate 6.00% Fixed
Terms:360 Months
LOAN TYPE: SIMPLE INTEREST BI-WEEKLY PAYMENTS (NOT MONTHLY PAYMENTS)
FACTS:6.0 % divided by 365,converting it to a daily rate of .01643% multiplied by loan balance (100,000)= $16.44 the first day and each day thereafter until the payment is made.When the payment is received it's applied first to the accrual account,what is left over is used to reduce the balance. When the balance declines a new and smaller daily interest charge is calculated.
Now based on a $100,000 loan @ 6% Monthly payment would be $599.56( BUT I AM PAYING $299.78 BI-WEEKLY ON A SIMPLE INTEREST LOAN OVER 30 YEARS)
MY QUESTION TO ALL OF YOU,HOW DO YOU FORMAT THIS ON A DAILY BI-WEEKLY SPREAD SHEET SO YOU CAN SEE THE AMORTIZATION PER BI-WEEKLY PAY OUT AND SO ON FOR ANY GIVEN TIME FRAME?????????????? PS: MS WORK SHEET CAN'T HELP.

PLEASE GIVE ADVICE YOU PROFESSIONAL E X P E R T S
 
moneyplays said:
I am seeking a program to calculate a (SIBW) simple interest biweekly loan....
To obtain off-the-shelf software, try your local big-box computer or office-supply retailer. To obtain customized software, please hire a programmer or contract with a service which offers such.

moneyplays said:
PLEASE GIVE ADVICE YOU PROFESSIONAL E X P E R T S
Actually, as you saw when you read the "Read Before Posting" thread that you read before posting, there is no paid staff waiting on-hand to provide on-demand professional services. This is a free tutoring (not programming or financial-services) site; the tutors are volunteers who surf by when they can.

I apologize for any confusion, and wish you well on your program-development project.

Eliz.
 
Comments:
1: the 6% is NOT simple, but is 6% compounded every 1/24 of the year, hence (1 + .06/24)^24 - 1 = .061757; so ~6.18%
2: there is NO NEED to calculate the interest daily; using .06/24 once is sufficient as it gives proper interest charge:
.06/24 = .0025 ; .0025 * 100000 = 250, the proper interest charge taken from the 1st biweekly payment
3: remember that biweekly does not mean exactly every 2 weeks (else you'd make 26 payments over a year):
biweekly means EXACTLY every 1/24 of the year
4: your "monthly payment" of "$599.56( BUT I AM PAYING $299.78 BI-WEEKLY)" is improper; the payment must be
calculated as the biweekly (every 1/24th of year) payment that is required to retire the loan over 720 payments:
that's done this way: 100000 * .0025 / [1 - 1/(1.0025)^720] = ~299.64

Anyway, you're asking (I believe) about a program that will "print out" a schedule; a bit like:
(columns = payment number, payment, interest, balance owing)
1 -299.64 250.00 99,950.36
2 -299.64 249.88 99,900.60
3 -299.64 249.75 99,850.71
.....
720 - 299.64 0.76 .00

Since you simply require one calculation (the interest), why are you having problems doing a simple print job?

In UBasic, this would do it:

b=100000 : i=.06/24 : p = b * i / (1 - 1/(1 + i)^720]
for n = 1 to 720 ' n = payment number
c = b * i ' c = interest charge
b = b - p + c
print n, p, c, b
next n
 
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