annual equivalent of cost related to Simple and Compound Interest Rates?
Adele69
Registered Posts: 320
Hi. I've been self studying Credit Control, with Osborne books and while they give this:
Simple Interest formula
(SD/100 - SD) x (365/PT - ES) x 100 where SD is Settlement Discount, PT is Payment Term and ES is Early Settlement
I haven't been able to find one for Compound Interest formula so have been browsing, but just found heated arguments in years past between Fonts of All knowledge and Tutors. Closest I got, pasting together bits I read but likely missing or plain wrong:
(1 + (SD/100 - SD) n? x (365/PT - ES) -1 x 100 but can't be sure of where n number of months goes
Simple Interest formula
(SD/100 - SD) x (365/PT - ES) x 100 where SD is Settlement Discount, PT is Payment Term and ES is Early Settlement
I haven't been able to find one for Compound Interest formula so have been browsing, but just found heated arguments in years past between Fonts of All knowledge and Tutors. Closest I got, pasting together bits I read but likely missing or plain wrong:
(1 + (SD/100 - SD) n? x (365/PT - ES) -1 x 100 but can't be sure of where n number of months goes
0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 322 NEW! Qualifications 2022
- 159 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 93 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 273 VAT
- 92 Software
- 274 Tax
- 138 Bookkeeping
- 7.2K General accounting discussion
- 201 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership