AFAIK, it would simply be
($10,000 * 0.05 / 365) * 30
The simple interest on a $10,000 loan for the month.
($10,000 * 0.05 / 365) * 30
The simple interest on a $10,000 loan for the month.
I don't know what you mean. For the Secured lines of credit that I have, the minimum payment is the interest on the loan. AFAIK, that's how lines of credit work.How much do I calculate the monthly minimum payment?
Mine is an unsecured one, then. It is with CIBC. I will calculate if 3% is the correct percentage. What does "unsecure" mean? Thanks.Unsecured lines of credit work a little different than a secured line of credit (like a HELOC). A HELOC requires interest only, but an unsecured LOC will require a min of 3% of balance payment/month (with CIBC anyways).
No doubt about it, mine is unsecured.Secured = secured against a physical asset, usually either the equity in your house ("home equity line of credit") or a CD or bond held at the issuing institution.
Unsecured = no physical asset is pledged as guarantee.
Thanks for the information, it solves the problem of calculating interest.AFAIK, it would simply be
($10,000 * 0.05 / 365) * 30
The simple interest on a $10,000 loan for the month.