Spreadsheet with interest

[Peterbard]

Just a thought but regarding like for like claims for penalty charges(I don't like big words)the spread sheets do take into considreration that the credit card contractual rate is usually quoted as an APR which as we al know is a completely different beast to simple interest or simple interest compounded.

[bram stoker]

The calculations use APR. You have to enter the APR rate you wish to use.

[Peterbard]

THe Uk version of APR has this formula

P=Σa/1+(r/100)^t

 

Where

P = Present Amount (the sum borrowed)(Total sum or charges owed)

A = Amount of a single repayment(average amount of Charge will probably do here)

R = Annual Percentage Rate(This will be the rate they quote)

(Sigma of course means you add multiples of the following which will of course each represent a charge.)

T=(Total time since first charge and then time other charges taken as a decimal or percentage/100 of 12 months)

 

 

Has the same fomula been aplied to your reciprical calculations.

[bram stoker]

The interest is calculated on each individual charge from the date of each charge, and no averaging is necessary.

 

Please feel free to take a look at the calculations within the spreadsheets and send any suggested amendments with explanations to me at the Vamp gmail address.

 

I am currently looking at a couple of others, and should be able to deal with most of them this weekend.

[Peterbard]

If you want to put individual amounts in each of the multitude of a/1+(r/100)^t that s ok,i just thught since you are using a spreadsheet and you will have the total amount and period it would be easier to use an average the result would be he same.

[Seminole]

Looking at Vamp's spreadsheet and the formula, I think the spreadsheet's calculation is more accurate. Essentially it does what the formula does without the need for averaging. It also allows interest charged on charges to be calculated and included in the overall calculation.

[jcd34]

can someone please confirm i am doing this right !!! I am using the simple spreadsheet to add 8% apr interest to my list of charges .So when i put in for example ; a charge of £82.50 taken on the 01/03/2002 i get an apr of £30.73 on this charge alone ! Is this what im meant to be doing ?

 

i have 47 charges to reclaim so if im doing this right thats a whole lot of interest - please can someone let me know if this sounds right .thanks .

[Seminole]

can someone please confirm i am doing this right !!! I am using the simple spreadsheet to add 8% apr interest to my list of charges .So when i put in for example ; a charge of £82.50 taken on the 01/03/2002 i get an apr of £30.73 on this charge alone ! Is this what im meant to be doing ?

 

i have 47 charges to reclaim so if im doing this right thats a whole lot of interest - please can someone let me know if this sounds right .thanks .

 

Yep, that's right. These models do work. You're getting 1,693 days simple interest at 8% per year. 8% of £82.50 is £6.60 and you're talking about just over 4.5 years. 4.5 x £6.60 is about £30.

[Peterbard]

Sorry, more accurate than what,the figures are either derrived by using the above formula and are APR as defined by UK Law.

 

or they are not

 

The question of averaging is a sidline issue the main formula is absent from any of the spreadsheets i have seen.

If I am wrong then show me where they are.

 

I know i am going to be regarded as taking a poke at a central figure in this forum but i made the initial observation in passing and am well able to back it up with all the mathematical proof required if nesesary.

[Seminole]

Sorry, I don't intend to provoke an argument but the formula you are quoting does not calculate an APR. It calculates the amount to be reclaimed and it uses the APR as an integral part of the calculation. You can rearrange the formula to calculate the APR of course but we are taken it as given based on the rates quoted by the bank.

 

My point was that the spreadsheet does essentially the same thing as the formula but it also does other things as well.

 

I'm sorry if I misunderstood your post.

[jcd34]

SEMINOLE - thank you for letting me know im doing it right !!! Going to go finish the spread sheet and add up all my interest now

[jcd34]

using the 8% interest spreadsheet give me a whopping £479 interest on 46 charges totalling £1665 .So i really hope i havent messed up cos thats alot of money .Thanks again Seminole !

[Peterbard]

Sorry, I don't intend to provoke an argument but the formula you are quoting does not calculate an APR. It calculates the amount to be reclaimed and it uses the APR as an integral part of the calculation. You can rearrange the formula to calculate the APR of course but we are taken it as given based on the rates quoted by the bank.

 

Apology accepted.

 

The formula does of course calculate APR or any of the other variables listed it is just a matter of rearranging it into what ever form you wish,including the correct sum due on the principal including the "APR" of interest. My observation was merely that while the spreadsheets available on here do essentially the same thing,they do not do not comply with the deffinition of APR and care should be used when using the term.

I Have been designing financial spreadsheets both in Excel an Access for financial agencies for many years,and am impressed by the quality of the ones on here,please don't regard my observationas as critisism in any way.

[bram stoker]

Peter,

 

Did you receive my email? I'm trying to work out what you're trying to tell us here. Exactly how and why would this formula be necessary within the spreadsheet?

 

Can you send me an example of a spreadsheet using it in a way you're trying to explain please, then I can understand better?

[matd]

In the previous excel spreadsheets you had to enter the maximum overdrawn figure for the month that the interest referred to.

I notice on the Google spreadsheet that it now says enter an average overdrawn figure. Is this correct? So if I was overdrawn (in the cleared for interest column of my statement) for the balances of -£550, -£650, -£800, -£825 and -£300, the average to enter in the cell would be -£625?

[bram stoker]

In the previous excel spreadsheets you had to enter the maximum overdrawn figure for the month that the interest referred to.

I notice on the Google spreadsheet that it now says enter an average overdrawn figure. Is this correct? So if I was overdrawn (in the cleared for interest column of my statement) for the balances of -£550, -£650, -£800, -£825 and -£300, the average to enter in the cell would be -£625?

I don't recal it saying maximum. The figures will give estimates. The arguement is stronger than the calculations. If you have accumulated £300 worth of charges, any overdrawn balance of £300 or less will be made up of charges and interest on the overdraft will be interest on charges.

[matd]

alright, I now understand the whole principle of how the charges make up the overdraft and interest - thanks for that!

 

to go back to my other point though, the way I entered the figures in the old excel sheets (using the above example) would have been to put the overdrawn balance for that period as -£825. So to reiterate, I do it the other way, i.e. entering the average of the balances that month (£625), not the greatest overdrawn amount (£825)?

 

Sorry if i'm being dense, I just get a bit confused when it comes to numbers - which got me in that situation in the first place

[SL56]

The instructions on the spreadsheet state to enter the balance at the date of interest so I entered my balance for the date the interest was deducted. I hope thats correct??!?!?!

[thewifeandI]

I have advised using the maximum overdrawn figure for the month ONLY when the balance on the interest date is above (or equal to) zero. If you don't do this then the interest for that month isn't included in the calculations and will be 'lost'.

[bram stoker]

The instructions on the spreadsheet state to enter the balance at the date of interest so I entered my balance for the date the interest was deducted. I hope thats correct??!?!?!

I advised that in the beginning when I was novice. I don't support those spreadsheets anymore, hence updated versions are now in place after having spent more time thinking about the scenarios involved.

 

To be honest it's not a major issue, put whatever figure gives a sensible answer keeping the principle and argument in mind.

 

Blueskies and WifeandI are working with the old spreadsheets, so please divert your questions to them. I'll keep the Google ones updated.

[hatcho]

Claim recieved from HSBC £1500!!!

[danmarton]

Re: Danmarton Against NatWest! Can anyone help me with the spreadsheets??? I am stuck with what to put in the interest rate section, having looked on the NatWest site for the rates regarding my overdraft, I have come up with these:

Current EAR variable 17.95%, Current nominal 16.62%, Current monthly nominal 1.38

Typical 18.86% EAR. Rates from 17.95% to 18.86% EAR.

Updated September 2006.

EAR stands for Effective Annual Rate - the real cost of an overdraft, stated as an annual fee, which takes into account how often interest is charged to the account. All other charges, such as arrangement fees, will be shown separately from the EAR.

 

So my question is which figure do I put in the spreadsheet, I am using Vamps (thanks Vamp) Throughout claim with contractual interest simple one, but unsure what figure I put in place of the 8.00%

Please someone help so I can get cracked on with it!

Thanks In Advance

[bram stoker]

Re: Danmarton Against NatWest! Can anyone help me with the spreadsheets??? I am stuck with what to put in the interest rate section, having looked on the NatWest site for the rates regarding my overdraft, I have come up with these:

Current EAR variable 17.95%, Current nominal 16.62%, Current monthly nominal 1.38

Typical 18.86% EAR. Rates from 17.95% to 18.86% EAR.

Updated September 2006.

EAR stands for Effective Annual Rate - the real cost of an overdraft, stated as an annual fee, which takes into account how often interest is charged to the account. All other charges, such as arrangement fees, will be shown separately from the EAR.

 

So my question is which figure do I put in the spreadsheet, I am using Vamps (thanks Vamp) Throughout claim with contractual interest simple one, but unsure what figure I put in place of the 8.00%

Please someone help so I can get cracked on with it!

Thanks In Advance

Have you any recent Natwest documents / letters stating which interest they apply to your account?

[danmarton]

The only thing I have at the present moment, is all my statements, with advice of debit interest, it states

Debit interest to be deducted

The current unarranged* rate applicable is 2.19% per month, effective annual rate 29.6%

 

It doesn't say anything about the arranged rate, but then that is another matter I am stuck with, am I cliaming on all the interest, or just the unaranged rate interest?

I am going to look thru my cupboard of paperwork right now and see if I can find anything with the arranged rate on it.

[bram stoker]

Did you arrange for them to take this money? I'd claim 29.6% personally.