I have a problem that I cannot solve regarding interest payments, and payment holidays. The scenario is this
If I purchase a product which is paid for over a 12 month period, I need to calculate the monthly interest payments. However, the complexity here, is that I have the option to take one month payment holiday (is optional, but can be any month over the 12 month period).
So far, I have
annual interest (a) = (e.g for 5%, a=5) monthly interest (m) = ((1 + a/100)^(1/12) - 1) x 100 balance = balance*(1+m) - instalment
How do I calculate the instalment, especially when including payment holiday?