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https://issues.apache.org/jira/browse/FINERACT-2062?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel
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Adam Saghy closed FINERACT-2062.
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Resolution: Invalid
> Use 48 weeks in a year when interest rate is per month
> ------------------------------------------------------
>
> Key: FINERACT-2062
> URL: https://issues.apache.org/jira/browse/FINERACT-2062
> Project: Apache Fineract
> Issue Type: Improvement
> Components: Loan
> Affects Versions: 1.9.0
> Reporter: Kigenyi Wilfred
> Priority: Minor
>
> Given that the interest rate period on a loan is monthly and client has
> chosen to make weekly repayments, it makes more sense to assume that there
> are 4 weeks in the month and 12 months in the year which comes to 48 weeks
> rather than assuming the traditional 52 weeks in the year.
> For example if a loan has a flat interest rate of 2% Per month and the
> principal is 1000 and the repayments are weekly, weekly interest is currently
> computed as follows:
> interest per week = (0.02*12*1000)/52 = 4.61538
> it would make more sense if interest per month is computed as follows:
> interest per week = (0.02*12*1000)/48 = 5
>
> In other words there is no need for computing weeks in a year when we are
> dealing with a month. There are 4 weeks in a month and this assumption
> calculates a more reasonable figure as compared to when we compute weeks in
> year.
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