NLs Please help oooo, I took a loan from a Micro finance bank to inject on my poultry farm on this condition. Interest on loan shall be charged at 15% per annum. On this condition I took a loan of #240,000 payable in 6 months under the above condition. What I saw in my account as the 1st tranche of deduction for the loan is #46,000 which will continue for 6 months. My own calculations makes me think, the deductions should have been #43,000 for six months since the condition did not say 15% flat rate. Please I need your advice on how to go about this or do you think they are right? Please help me do your independence calculation and assist a brother for an advice...Thank you.

swit4real:
NLs Please help oooo, I took a loan from a Micro finance bank to inject on my poultry farm on this condition. Interest on loan shall be charged at 15% per annum. On this condition I took a loan of #240,000 payable in 6 months under the above condition. What I saw in my account as the 1st tranche of deduction for the loan is #46,000 which will continue for 6 months. My own calculations makes me think, the deductions should have been #43,000 for six months since the condition did not say 15% flat rate. Please I need your advice on how to go about this or do you think they are right? Please help me do your independence calculation and assist a brother for an advice...Thank you.

I did not post the topic for you to and read, I am pleading for an assistant on how to solve a challenging issues in my business

swit4real:



I did not post the topic for you to and read, I am pleading for an assistant on how to solve a challenging issues in my business

65 reads without one post, please make your comments

Hi,
The micro finance bank deducted the right amount of money from your account. Breakdown:
Loan amount=240,000
Interest on loan(15%) =36,000
Loan+interest (36,000+240,000)=276,000

276,000/6=46,000. QED

Hope that helps.

sunnyboi:
Hi,
The micro finance bank deducted the right amount of money from your account. Breakdown:
Loan amount=240,000
Interest on loan(15%) =36,000
Loan+interest (36,000+240,000)=276,000

276,000/6=46,000. QED

Hope that helps.

I have a contrary view

I have contrary view. The terms of the loan says
1) 15% per annum
2) Duration of 6 months = (6/12) or (0.5 years)
3) Principal is 240,000

Using the simple interest formula I=(PTR/100)
I=(Interest)
P=(principal)
T=(time)
R=(rate)

I= [P * T * R ]/ 100
let the R be the unknown
36,000 = [240,000 * 0.5 * R]/100
Make R subject of the formula
R= (36,000 * 100)/(240,000 * 0.5) = 30%
Here. I was charged 30% not 15% per annum.

Lets work for the supposed interest using same formula

I= PTR/100
Let I be the unknown.
I= [240,000*15*0.5]/100 =18,000
Interest = 18,000.

If interest is 18,000 why was I charged 36,000.