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How do you calculate a 12 month average balance on a loan?
The answer depends on when interest is calculated, how frequently payments are made, the interest rate being charged and the life time of the loan. There are a number of "interest calculators" available on the Internet that can probably show you the answer - working out the answer from scratch means you'll need to add on the interest for each payment / interest cycle over the 12 months and then you can work out the average. If your using this to calculate your interest then an accurate calculation will depened on how your interest is calculated ie. daily monthly semi-annual, or annual. The simplist answer is take the balance of the loan at the end of each month, add them together and then divide by 12
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The balance means the amount of money that you still owe on the loan.
How do you calculate the dollar cost of a loan When the loan is 14500 for 20 days with an annual rate of 12?
Dollar cost of loan = Amount borrowed x interest rate x (days loan is outstanding ? days in the year (360)) 14.500 * 12%*(20 / 360) = 96.67
Loans here means the loans given to other companies/subsidiaries. The company will receive an interest on these loans and hence is an asset. Advances means any payments to sta…ff as an advance.
The average is also called the 'mean' which is the sum of the values divided by the number of values used. It represents the number that all the values in the group would …add up to if they were all the same number. Say you want the average score for 17 students who took your art history exam. You add the 17 individual scores together. Then you divide this sum by 17, the number of scores being averaged. The answer you get is the average, or mean score on the exam. An average may be an integer, a fraction, a mixed number, or a decimal number, and it could be positive, negative, or zero too, if some or all of the items in the group are zero or negative. To calculate the average of a group of numerical items: Add up all the items in the group. Divide the sum by the number of items in the group. The quotient is the average of the group. Another Example: Four students pick apples: one has 3, one has 4, one has 5, and one has 8. To evenly divide the apples, you would find the average (sum/number of values). 3 + 4 + 5 + 8 = 20, divided by 4 students is 20/4 = 5 apples.
it is the sum of the daily balance divided by the number of days in the billing cycle
Monthly average balance is the sum of daily balances in a month divided by the number of days in that month.
adding up all the data and then dividing the sum by the number of data you had (for example, the average of the numbers 1, 2, and 3 is 1+2+3=6/3=2)
The average weight of a 12 month old child is three times the birth weight of that child. At 6 months they should be double their birth weight!
a 12 month old has about 5 to 4 mabey 6 teeth by that age.
add all the outcome / example 15, 64, 21, 7, 10, 3 = 120. Then divide the sum of all the numbers by the number of numbers/ example, take 120 divided by 6=20. So the average nu…mber out of all the numbers above is 20.
It will be different from final maturity, in case this is an amortising loan. In essence, you should be looking at this particular term loan as a series of shorter term loans …with different final maturities. So to calculate the average life, you should calculate the average of these multiple maturities weighted by the debt sums (aka debt amortisation sums). - - - - - Say if you have borrowed £100 with semi-annual amortisation over a period of 10 years, £5 is due in 6 months, another £5 in 1 year... another £5 in 9.5 years and the final £5 in 10 years. In Excel use SUMPRODUCT function to multiply an array of maturities (0.5,1,...,9.5,10.0) by an array of debt sums (£5,£5,...,£5,£5). You'll then divide the result over the total amount (£100). The result should be 5.25 years. This is a reflection of the fact that your liability decreases over time.
The average monthly balance is calculated by adding the ending monthly balance for the period (usually 12 months) and dividing this by the period. e.g. For a period of 12 mos …with an ending balance at the end of each month of $12 you would have 12+12+12+12+12+12+12+12+12+12+12+12=144 and 144/12= $12. Therefore the average balance over the period is then $12. Hopes this helps. It is the sum of the end of day balance in the account for each day in the quarter, divided by the number of days in the quarter. http://www.hdfcbank.com/personal/accounts/aqb_pop_up.htm#3 The question did not indicate the period. It is the sum of the end of every day balance in the account divided by the period for which calculations are made. To amplify the sum of daily balances will be divided by number of days, if you need average daily balance, and by months in case you need monthly average etc.
add all of the balances together and then divide that number by the amount of balances that you added
That's because averages give us some idea about general tendencies.