# Compounding Rate of Interest

#### N Prakash

##### Active Member
Hi,

I have a loan amount of Rs.100000/- @ 10%, term of loan is 36 months with 12 months repayment holiday. During the repayment holiday the interest has to be deferred and based on the option of the customer I want to calculate simple rate of interest or compound rate of interest and arrive EMI amount or Fixed principal amount on the accumulated amount. Any simple formula. I am using a cumbersome procedure of generating a schedule separately and arrriving the total amount.

Any help to simplify the procedure.

Regards,
Prakash.

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#### Chitosunday

##### Well-known Member
Friend, i think it is better if you give the answer on simple and compound interest. Computation of interest is now so sophisticated that there is so many versions per country. My thought is if there is a 12 months holiday , then you must get the future value of that amount on its 12 month which will give you your revised present value. The other 24 months then is your revised period. You can now use the function pmt()

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