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FINERACT-2062: Use 48 weeks in a year when interest rate is per month #3795

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FINERACT-2062: Use 48 weeks in a year when interest rate is per month #3795

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6 changes: 3 additions & 3 deletions ...a/org/apache/fineract/portfolio/loanaccount/loanschedule/domain/LoanApplicationTerms.java
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Original file line number Diff line number Diff line change
Expand Up @@ -1056,7 +1056,7 @@ private BigDecimal calculateLoanTermFrequency(final LocalDate periodStartDate, f
public BigDecimal interestRateFor(final PaymentPeriodsInOneYearCalculator calculator, final MathContext mc,
final Money outstandingBalance, final LocalDate fromDate, final LocalDate toDate) {

long loanTermPeriodsInOneYear = calculator.calculate(PeriodFrequencyType.DAYS).longValue();
long loanTermPeriodsInOneYear = calculator.calculate(PeriodFrequencyType.DAYS,interestRatePeriodFrequencyType).longValue();
int repaymentEvery = Math.toIntExact(ChronoUnit.DAYS.between(fromDate, toDate));
if (isFallingInRepaymentPeriod(fromDate, toDate)) {
loanTermPeriodsInOneYear = calculatePeriodsInOneYear(calculator);
Expand All @@ -1081,13 +1081,13 @@ private long calculatePeriodsInOneYear(final PaymentPeriodsInOneYearCalculator c
if (daysInYearToUse) {
periodsInOneYear = this.daysInYearType.getValue().longValue();
} else {
periodsInOneYear = calculator.calculate(this.repaymentPeriodFrequencyType).longValue();
periodsInOneYear = calculator.calculate(this.repaymentPeriodFrequencyType,interestRatePeriodFrequencyType).longValue();
}
switch (this.interestCalculationPeriodMethod) {
case DAILY:
periodsInOneYear = !this.daysInYearType.getCode().equalsIgnoreCase("DaysInYearType.actual")
? this.daysInYearType.getValue().longValue()
: calculator.calculate(PeriodFrequencyType.DAYS).longValue();
: calculator.calculate(PeriodFrequencyType.DAYS,interestRatePeriodFrequencyType).longValue();
break;
case INVALID:
break;
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2 changes: 1 addition & 1 deletion ...fineract/portfolio/loanaccount/loanschedule/domain/PaymentPeriodsInOneYearCalculator.java
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Expand Up @@ -25,7 +25,7 @@

public interface PaymentPeriodsInOneYearCalculator {

Integer calculate(PeriodFrequencyType repaymentFrequencyType);
Integer calculate(PeriodFrequencyType repaymentFrequencyType, PeriodFrequencyType interestRatePeriodType);

BigDecimal calculatePortionOfRepaymentPeriodInterestChargingGrace(LocalDate repaymentPeriodStartDate, LocalDate scheduledDueDate,
LocalDate interestChargedFromLocalDate, PeriodFrequencyType repaymentPeriodFrequencyType, int repaidEvery, MathContext mc);
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6 changes: 3 additions & 3 deletions ...t/portfolio/loanaccount/loanschedule/domain/DefaultPaymentPeriodsInOneYearCalculator.java
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Original file line number Diff line number Diff line change
Expand Up @@ -32,15 +32,15 @@
public class DefaultPaymentPeriodsInOneYearCalculator implements PaymentPeriodsInOneYearCalculator {

@Override
public Integer calculate(final PeriodFrequencyType repaymentFrequencyType) {
public Integer calculate(final PeriodFrequencyType repaymentFrequencyType,final PeriodFrequencyType interestRateFrequencyMethod) {

Integer paymentPeriodsInOneYear = 0;
switch (repaymentFrequencyType) {
case DAYS:
paymentPeriodsInOneYear = 365;
paymentPeriodsInOneYear = interestRateFrequencyMethod.isMonthly() ? Integer.valueOf(360) : Integer.valueOf(365);
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This looks weird to me. If why would it be 360 if it is monthly?

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With monthly interest interest and daily repayments, it looks more reasonable to assume that there are exactly 360 days, a number divisible by the 12 months in the year brings our more explainable installments.

break;
case WEEKS:
paymentPeriodsInOneYear = 52;
paymentPeriodsInOneYear = interestRateFrequencyMethod.isMonthly() ? Integer.valueOf(48) : Integer.valueOf(52);
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This looks weird to me. If why would it be 48 if it is monthly?

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If the interest frequency is monthly, it looks more reasonable to assume there are four weeks in a month, so with 4 weeks in a month and 12 months in a year we shall have 4 x 12 = 48 weeks in a year.

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I dont think thats right... monthly interest calculation cannot be 4 weeks... @bharathc27 Thoughts?

break;
case MONTHS:
paymentPeriodsInOneYear = 12;
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