Recently, I was looking to obtain a loan for some reason. However, I am very confused with the interest calculation methods and how the whole process is done. For example, I borrow a sum of 1,000,000 for a time period of 2 months at an interest rate of 8.5% pa. How will the interest be calculated? I heard that its calculated by taking the daily balance or something.
If someone knows this, please comment and help!