An important message
An important message
CIC uses common formulas for calculating compound interest adjusted to five different scenarios.
However, keep in mind that lending institutions charge fees which add to the overall costs. There are also differences between banks, credit unions, building societies and credit card companies. For example, making your repayment earlier or later than the appointed time will affect the interest charged over that period; by how much depends on the type of lender.
Any arrangement with a bank or any other lending institution that goes further needs to be discussed at the time.
For example, if a loan is to be renegotiated during its lifetime, it is up to the lender to determine the size of the remainder and the amount of interest accrued so far. Several factors will influence that decision, and they can vary under different economic circumstances and between different types of lenders. Although the general formula is used here, the actual situation at the time can vary.
Note: one parameter not often asked for is the amount of times per year interest is being calculated, but it is nevertheless part of the calculation. Its value is usually around 12 times per year. If the end result from CIC differs slightly from what a bank's calculator for example shows, it can be due to that factor being not exactly '12'.
Another reason why CIC's result may differ slightly from some other calculator is the rounding used in the respective calculations; in other words, the number of significant digits used in the calculations (CIC uses up to 15 significant digits, therefore using less can produce a slightly different number in the result).
Note regarding security and your privacy: the data displayed in CIC are only stored temporarily while the program is running. That includes each of the modules and the memory store display. To save the figures for later copy them to the clipboard and paste them into a document of your choice to be saved as a file.
D.W.A. Donald, Compound interest and annuities certain, Institute of Actuaries and the Faculty of Actuaries, Cambridge University Press, Cambridge, 1953.
E.F.W. Sumner, Practical Compound Interest, Financial Publications, Wellington, 1953.
G.E. Churchill, Compound interest simplified, Pergamon Press, Oxford, 1969.