Interest Rate Table

Use this optional routine to create and maintain a table of rules for interest calculation on installment contracts in this jurisdiction. The table is built in ascending financed amount order, with corresponding interest rates that are used if the interest rate is not specified in the plan settings.

Click the Arrow button at this mandatory field and select the method to use when calculating interest in this jurisdiction. The method you select applies to calculations using the Baseline APR and Interest Rate.

Your options are:

Straight Line Interest - The interest, insurance, and principal amounts remain the same each month, based on the Installment payment amount.
Declining balance (APR) - The insurance, interest, and principal amounts being paid are calculated from the payment amount each month over the term remaining.

Enter the financed amount for which you are entering a corresponding interest rate.

Tiered Interest Table is Checked: The portion of the amount being financed that is greater than this amount, but less than or equal to the next higher amount in the table, uses the lower tier's corresponding interest rate when finance charges in this jurisdiction are assessed.

Tiered Interest Table is Not Checked: One interest rate is used by locating the financed amount in the table and using the corresponding rate.

Enter the interest rate to use when calculating finance charges on the corresponding financed amount. Click the Add button to update the interest table grid.

Use this check box in conjunction with the interest table to determine if the interest calculation should be tiered or a single rate. If you check the box, a tiered calculation is performed; if you leave the box blank, a single rate calculation is performed. The default is checked.

With the tiered calculation, a different interest rate is assessed based on the tiers in the interest rate table. Each tier represents a range of a portion of the financed amount and the associated interest rate.

With the single rate calculation, the amount financed is located in the interest rate table and the associated interest rate is assessed on the amount financed.

Financed $ - this column represents the tiered finance amounts
Interest Rate - for each financed amount, a corresponding interest rate appears in this column
Remove - to delete a line from the grid, click the Remove button