Oct 26th 2011, 22:15:47
I've always kept my own amortizations and had goals/forecasts for when I'd pay stuff off. I keep track of this in excel and never rounded. On my home loans I've always matched to the penny (not a single problem in 12 years with any payment), but with my wife's school loans I'm often off by a penny or two.
Now I'm trying to calculate the payoff and I was just curious if anyone in the banking industry, etc. knew if there was a standard for how many decimals places rates are rounded to (if rounded at all). They are clearly rounding or doing something on these school loans and it's annoying. Sure I could add a few pennies to my payment, but I'd like to understand WTF they're doing.
I've tried rounding my daily rate from 9 to 14 decimals and I'm still off.
Now I'm trying to calculate the payoff and I was just curious if anyone in the banking industry, etc. knew if there was a standard for how many decimals places rates are rounded to (if rounded at all). They are clearly rounding or doing something on these school loans and it's annoying. Sure I could add a few pennies to my payment, but I'd like to understand WTF they're doing.
I've tried rounding my daily rate from 9 to 14 decimals and I'm still off.