I just upgraded to Quicken 2007 HAB and this issue (see below) still has not been resolved. It appears that Quicken has hard-coded the values that correspond to the "Compound Period" options (Daily, Monthly, and Semi-Annually). I have a Simple Daily Interest loan in which the compound period (n) is 365.25. My interest rate is fixed as is my monthly payment. All I want Quicken to do is accurately determine how much of my monthly payment is interest and how much goes towards the principal of my loan. Either the hard-coded Compound Period is not
365.25, Quicken is not accurately counting the number of days between payments, or Quicken is simply using the 'incorrect' formula to calculate interest for my loan.
Quicken's amortization calculations are explained here:
[Interest payment = r × Remaining principal] where [r = interest rate per period = Annual interest rate/n]
For a short explanation of Simple Daily Interest you can visit this page:
Am I the only person on the planet with a student loan who wants to use Quicken?
Date: Fri, Jan 14 2005 3:41 pm
>Email: "Busthead"
>Groups: alt.comp.software.financial.quicken
>
>If you search for "How is amortization calculated in Quicken?" using
>quicken help you'll have the necessary background to understand my >question. >
>Is there a way to adjust the 'n' (number of periods per year) value for
>each 'Compound Period' (Daily, Monthly, Semi-Annually)? If these values
>are hardcoded what are they?
>
>I'm using Quicken 2004 Dlx on Windows.