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Question by Andrew: How do I calculated the imputed interest on a short-term loan? I know to use the applicable federal rates to find the imputed interest, but I'm not sure if there if there is a specific way to calculate. Assume a $ 20,000 short-term (1-3 year) demand loan. Thank you! Also assume $ 1000 monthly payments. Should the interest be calculated monthly on the declining balance? Best answer for How do I calculated the imputed interest on a short-term loan?:
Answer by v b
Date of deposit to date of deposit. If no payments are made, do it with the annual rate on 12/31.
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