Add-on Interest Loan
Create a new Record with "File" and "New Record".
Add-on interest is a peculiar calculation which Margill Loan Manager
(MLM) can handle easily to compute the true interest rate (APR).
For example, a car dealer advertises a rate of 12.50 per hundred
per year on a 20,000 loan to be repaid in monthly payments over
How much interest is payable? What is the interest rate (or APR)
on this loan?
This will give us a total add-on of 10,000 in interest: 20,000/100
X 12.50 X 4. This 10,000 is added in the APR window.
The total loan is thus 30,000 to be repaid in 48 equal payments
at "0.00%" interest. The compounding period is not important since
for the reimbursement, the interest rate is 0.00%.
Once the data entered, press on "Compute". The payment will be
calculated by MLM (625 per month) and the detailed payment schedule
To obtain the APR, click on "APR". The rate calculated is 21.5273%
(thus the APR).