3 ms·
I’ve tried to reproduce monthly payment amounts and found it’s incredibly difficult to match the bank’s calculation. They could be compounding interest at a di
by zaroth 7y ago
I’ve tried to reproduce monthly payment amounts and found it’s incredibly difficult to match the bank’s calculation.
They could be compounding interest at a different rate. They could calculating the daily rate one of 3 different ways. I believe there can also be differences based on the grace period for making payments.
PMT() doesn’t account for any of this - it’s just simple interest.
It’s worse for commercial real estate loans than residential. In my case I gave up trying to reproduce their calculations.
- lotsofpulp 7y agoThis calculation was way off, not a few dollars or cents. Clearly there was an error with one of the parameters being used to calculate it.
- zaroth 7y agoMy point is less about your specific situation, and more that — in general — it’s possible someone doesn’t even realize they’re one of those “trouble” customers costing the company money and justifying the building of a support moat.