Kigenyi Wilfred created FINERACT-2062: -----------------------------------------
Summary: Use 48 weeks in a year when interest rate is per month Key: FINERACT-2062 URL: https://issues.apache.org/jira/browse/FINERACT-2062 Project: Apache Fineract Issue Type: Improvement Components: Loan Affects Versions: 1.9.0 Reporter: Kigenyi Wilfred Fix For: 1.10.0 Given that the interest rate period on a loan is monthly and client has chosen to make weekly repayments, it makes more sense to assume that there are 4 weeks in the month and 12 months in the year which comes to 48 weeks rather than assuming the traditional 52 weeks in the year. For example if a loan has a flat interest rate of 2% Per month and the principal is 1000 and the repayments are weekly, weekly interest is currently computed as follows: interest per week = (0.02*12*1000)/52 = 4.61538 it would make more sense if interest per month is computed as follows: interest per week = (0.02*12*1000)/48 = 5 In other words there is no need for computing weeks in a year when we are dealing with a month. There are 4 weeks in a month and this assumption calculates a more reasonable figure as compared to when we compute weeks in year. -- This message was sent by Atlassian Jira (v8.20.10#820010)