Hello - About 9 months ago i setup a loan to a friend. It has an

interest rate of 10% and he's been making varied payments since the

inception($25, $50, etc.) I have them listed in my checking with the

category being the name of the loan account: [Jeff] This enters them

nicely in the Jeff loan account. What I really want it to do is get

Quicken 2004 Premier to calculate the interest and principal activity

that was made between payments? I would have thought it should

calculate each autmatically each time a new payment was logged. Is

there someway to get to what I want here, or does Quickend not even

support this?

Quicken supports loans that have a regular amortization schedule, like

mortage loans, where you pay (or are paid) a fixed amount of money on

a periodic schedule. Quicken doesn't support - in an automatic way -

loans with ad hoc payment amounts and payment periods. You'll have to

calculate interest on such a loan yourself, according to the terms of

the loan, and then enter a split transaction for each payment; so much

principal to the loan account, so much interest to the Interest Income

category.

Let's say, for simplicity, that the loan calls for a daily calculation

of interest at the annual interest rate on the outstanding balance.

Let's say you lend Jeff $500 and he made the first $25 payment 25 days

later. You'd calculate interest as follows:

$500 times 10% divided by 365 days = $.14 (Daily rate)

$.14 times 25 days = $3.50 (Interest at first payment)

$25.00 - $3.50 = $21.50 (Principal payment)

You'd enter Jeff's first payment as a split transaction with $21.50

going to reduce the [Jeff] account and $3.50 going to your Interest

Income:Jeff category. The [Jeff] account's balance is now $478.50.

If Jeff's next payment of $50 was made 30 days after the first payment

you'd make a new calculation:

$478.50 times 10% divided by 365 days = $.13 (Daily rate)

$.13 times 30 = $3.90 (Interest at second payment)

$50.00 - $3.90 = $46.10 (Principal payment)

and so on.

Of course, your calculations will depend on the terms of your loan to

Jeff, but the concept of making a seperate calcuation for each ad hoc

payment remains the same.

Tom Young