Bi Weekly Loan Calculator: Do the Math Manually Without a Bi Weekly Loan Calculator
For any teenager or any newbie who reads this article, the first thing that would pop into your mind would be the question, “What is a bi weekly loan?” Well, to start this article we take a look at that term. A bi weekly loan is a loan that would require you to pay your interests twice a month, usually once in every two weeks of a month for the number of years of the loan.
A bi weekly loan calculator on the other hand, is a device or even a program that calculates how much you will need to pay, as interest, on a bi weekly basis depending on the amount you loaned, your interest rate and the number of years you will pay back the loan.
This device is quite useful because it can easily let you know how much you’d really have to pay as most standard of loans can be really confusing. If in case you don’t have a bi weekly loan calculator, you can always do the counting manually. First, write down your principal, or your total loan amount which in this example is $1,000 and we’ll call it A.
Since you’ll be paying twice in one month for a year, you’d be paying 24 times in a year (it’s actually 26 times). Take that number and multiply it with the number of years of your loan which in this example is 3 so 24×3 equals 72 and we’ll name 72, B. Take your annual interest rate, 5% for this example, and convert it to decimal point by 5/100 equals to 0.05. Then divide this number with 24 to get your interest per payment which is 0.05/24 equals 0.00208 and we’ll call this C.
Using this formula C(1+C)^B, 0.00208(1+0.00208)^72 we will then get 0.0024157 which we’ll call D. Then use this second formula (1+C)^B-1, (1+0.00208)^72-1 to get 0.16137 and we’ll call it E. Simply divide D by E, 0.0024157/0.16137 equals to 0.0149699 then we’ll call it F. Finally, multiply A by F, 1,000×0.0149699 equals to $14.97 which is your total bi weekly amount to be paid.
It is quite easy to manage once you get the hang of it. Paying your loan in a bi weekly basis can help you in the long run. It wouldn’t seem different with your first look because you still pay the same amount as you would once every month but it would discreetly shorten your loan’s lifespan which will undoubtedly lessen your interests.