Interest is calculated on a daily basis and is not compounding.

The Interest Rate is quoted on a per 30 day basis. To calculate the interest accrued for a loan amount simply use the following formula:

Interest Accrued = Loan amount outstanding x Interest Rate / 30 x Days  the loan is outstanding.

Example - loan balance is $100,000 for 45 days. Interest Rate is 1.2% per 30 days

Interest Accrued = $100,000 x 0.012 / 30 x 45 = $1800

Did this answer your question?