[moneydance] new loan

[Edward A. Melia, C.P.A./Attorney]

Jim,

As Sean stated, you still owe $10,000 on the loan although you only 
received $9,950.

It appears that there may be a problem with the interest rate or the 
compounding method.  If I set up a $10,000 loan with biweekly 
payments of $86.51 for 130 payments and biweekly compounding the 
annual percentage rate generated by my software is 4.675% (not the 
4.625% stated in your email).  If the loan was $9,950 then the 
percentage rate gets pushed up to 4.879%.

   Ed Melia, Sacramento, CA


At 11:03 AM 11/25/2006, you wrote:


>Hi Jim,
>
>The $50 fee would have reduced the disbursement amount, but the
>remaining principal (aka "loan amount") would still be $10,000.  I
>would set the loan amount as $10,000 and record the $50 fee separately
>from the account that received the disbursement.
>
>Thanks,
>Sean
>
>On 11/25/06, Jim Smeall <macturbo at centurytel.net> wrote:
> > Sean,
> > The loan amount is $10,000, They take out a loan fee of $50 when they
> > disburse the loan. 5 year loan with 26 payments per year. Interest
> > rate is 4.625%.  Total amount of payments is $11,242.71. The total of
> > payments isn't exact, $86.51 X 130 = $11,246.30.
> >
> > I entered $9,950.00 as the loan amount, the interest rate, number of
> > payments, payments per year and the start date (12/1/2006). But
> > Moneydance states that I have 129 payments remaining. I haven't made
> > a payment yet.
> >
> > If I enter $10,000 how do I show the loan fee and get the correct
> > balance prior to making any payments?
> >
> > ~Jim
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