Calculated Industries 43285 - Manual (Page 33)

Odd Days Interest & APR
Odd days interest is the “prepaid” interest accumulated from the
date of escrow closing to the first payment date. It is based on
straight simple interest calculated for a 360-day year, using the
entered interest rate value. This interest is calculated at funding
time, and is included in the total cost of the loan, for calculating
the Annual Percentage Rate (APR).
When solving for odd days interest, you must enter the fol-
lowing: (1) loan amount (2) annual interest, and, (3) number of
days from escrow closing to the date of the first payment.
Finding ODI and APR
Find the monthly payment on a $100,000 loan at 8.5% annual
interest and 30 year term. Then, find the amount of odd days
interest, or “prepaid” interest due, if the escrow closes on
7/21/98 and the first payment is due 8/1/98.
Steps Keystrokes Display
Clear calculator [On/C] [On/C] 0.00
Enter loan amount 100,000 [L/A] 100,000.00
Enter interest 8.5 [Int] 8.50
Enter term 30 [Term] 30.00
Find monthly payment [Pmt] “run” 768.91
Find days between escrow 8 [:] 1 [:] 98 [–]
closing & date of 1st pmt
7 [:] 21 [:] 98 [=] 11.00
Find the pre-paid interest
due at closing
[Set] [000] 259.72
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32 – Qualifier Plus ® IIx DT