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FINERACT-2062: Use 48 weeks in a year when interest rate is per month #3795
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Original file line number | Diff line number | Diff line change |
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@@ -32,15 +32,15 @@ | |
public class DefaultPaymentPeriodsInOneYearCalculator implements PaymentPeriodsInOneYearCalculator { | ||
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@Override | ||
public Integer calculate(final PeriodFrequencyType repaymentFrequencyType) { | ||
public Integer calculate(final PeriodFrequencyType repaymentFrequencyType,final PeriodFrequencyType interestRateFrequencyMethod) { | ||
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Integer paymentPeriodsInOneYear = 0; | ||
switch (repaymentFrequencyType) { | ||
case DAYS: | ||
paymentPeriodsInOneYear = 365; | ||
paymentPeriodsInOneYear = interestRateFrequencyMethod.isMonthly() ? Integer.valueOf(360) : Integer.valueOf(365); | ||
break; | ||
case WEEKS: | ||
paymentPeriodsInOneYear = 52; | ||
paymentPeriodsInOneYear = interestRateFrequencyMethod.isMonthly() ? Integer.valueOf(48) : Integer.valueOf(52); | ||
There was a problem hiding this comment. Choose a reason for hiding this commentThe reason will be displayed to describe this comment to others. Learn more. This looks weird to me. If why would it be 48 if it is monthly? There was a problem hiding this comment. Choose a reason for hiding this commentThe reason will be displayed to describe this comment to others. Learn more. 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. There was a problem hiding this comment. Choose a reason for hiding this commentThe reason will be displayed to describe this comment to others. Learn more. I dont think thats right... monthly interest calculation cannot be 4 weeks... @bharathc27 Thoughts? |
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break; | ||
case MONTHS: | ||
paymentPeriodsInOneYear = 12; | ||
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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.