INTEREST CALCULATION

INTEREST CALCULATION

Interest calculation is the mode of charge interest on whole or outstanding balance.

There are two types of interest calculation:-

             1)   Simple Interest Calculation

             2)   Compound Interest Calculation

Simple Interest Calculation: - Simple Interest Calculation, interest is charged on outstanding balance at the same rate of interest.

It is also of two types:-

           a)    Simple Outstanding Interest Calculation

           b)    Simple Invoicing Interest Calculation

Compound Interest Calculation: - in Compound Interest Calculation, interest is charged on whole instalment at different rate of interest.

It is also of two types:-

           a)    Compound Outstanding Interest Calculation

           b)    Compound Invoicing Interest Calculation

The methods to record these interest calculations are given in the next topics. Follow that steps and record in tally to work on it.