Simple Interest Calculation on Bank Loan

[harishdeen]

Hi,

I got a $319 (2,00,000INR) loan from xxxxx bank on 2009 with the interest rate of 6% for 5 years for my own business investment. Now my simple interest in this bank is $125 (7816INR). But i have tried simple interest calculator to check rate of interest for my bank loan amount. It shown just $96 (6000INR) as interest rate for 5years. I have asked that bank manager to clarify the doubt on interest rate $125, but no response. Is the bank's interest rate is ryt?

Kindly explain me the calculation on this. It would be most grateful.

[Petunia 100]

Hi,

I got a $319 (2,00,000INR) loan from xxxxx bank on 2009 with the interest rate of 6% for 5 years for my own business investment. Now my simple interest in this bank is $125 (7816INR). But i have tried simple interest calculator to check rate of interest for my bank loan amount. It shown just $96 (6000INR) as interest rate for 5years. I have asked that bank manager to clarify the doubt on interest rate $125, but no response. Is the bank's interest rate is ryt?

Kindly explain me the calculation on this. It would be most grateful.

Do you pay the interest each year, or do you allow it to compound?

If you do not pay the interest, I calculate that you would owe $107.89 in interest at the end of 5 years.

Also, if you took the loan in 2009, it has been at least 5 years and 3 months to at most 6 years and 3 months since you took the loan. You owe interest for that additional time as well.