Example of Calculating BIR
Example of Calculating BIR
Monthly basic interest rate (BIR) in January 2000 was 0.7%. Information is issued by authorized institutions (Bank of Slovenia,etc...).
Monthly basic interest rate (BIR) calculated on annual basis is also issued by authorized institutions. It can be calculated based on monthly basic interest rate (BIR) in the following way:
For Example, for January 2000 (which was a leap year!):
When later calculating you use data on annual basic interest rate which is rounded to two decimal points.
Use this window also for calculating nominal interest rate. If real annual interest rate is 14.40 and monthly basic interest rate equivalent to 0.7, then for example the nominal real interest rate on default interest was 13.26 in March 2000.
