Bank Interest Restrospectively Accrued

[dageurreotype]

If a bank loan of three million baht were taken out against a property in 2010, how much interest would have been accrued to date? I'm assuming that in this country, most banks charge the same amount of interest, (unlike our Western counterparts), but if not, a median amount would amount to what? Thanks

[dageurreotype]

Is it THB 1,306,887.84 @ 7.5 compound interest? I can do sums without a kreung kid lek But this compound interest stuff has me strugglin' . Fank yoo.

[gandalf12]

You dont mention how much is repaid monthly. With that it isnt hard to calculate. If nothing was repaid and the rate of interest is 7.5% then something like Baht 225,000 a year would be accrued plus for the second year it would be 7.5% of deposit plus th accrued interest i.e Baht 3,225,000

Edited July 13, 2016 by gandalf12

[dageurreotype]

Thanks for taking the trouble to reply. It was that formula I'd based my figure on. Might need to tidy it up a bit though Thanks again.

[dageurreotype]

After my 'tidying up' I came up with an accrued interest of THB 243,242.666 Anyone can verify please? Looks a bit on the low side to me. No payments have ever been made, I'm simply trying to come up with a reasonable rebuttal on an unreasonable thieving POS. Tad urgent. Thanks

[gandalf12]

You have to remember what isnt paid in the first year also accrues interest in the following years, it is not a one off thing.

[dageurreotype]

You have to remember what isnt paid in the first year also accrues interest in the following years, it is not a one off thing.

Okay, so does THB 775,163.838 sound nearer the mark? I've added every year's non payment, year on year to arrive at this figure. I am trying ..

[Oxx]

You have to remember what isnt paid in the first year also accrues interest in the following years, it is not a one off thing.

Okay, so does THB 775,163.838 sound nearer the mark? I've added every year's non payment, year on year to arrive at this figure. I am trying ..

Your approach is almost certainly going to lead to an underestimate, since interest is accrued daily, not annually.

Also, your assumption of 7.5% interest - is the interest rate permanently fixed? Or has it varied with the MLR over time?

[dageurreotype]

You have to remember what isnt paid in the first year also accrues interest in the following years, it is not a one off thing.

Okay, so does THB 775,163.838 sound nearer the mark? I've added every year's non payment, year on year to arrive at this figure. I am trying ..

Your approach is almost certainly going to lead to an underestimate, since interest is accrued daily, not annually.

Also, your assumption of 7.5% interest - is the interest rate permanently fixed? Or has it varied with the MLR over time?

I just used 7.5% as it's Bangkok Bank's benchmark rate. I'd applied a monthly rate for the same reason. Borrowers borrow at a set rate and repay each month? If they don't pay up, forfeiture beckons. Doesn't apply to my situation. I'm not a loan shark Simply applying a fair rate and hope for retrieval if it's off to court we go