This calculator can help borrowers to discover how much interest and time can be saved if they make 1/2 or 1/4 of monthly repayments every two weeks or one week. The borrowers will repay the loan sooner and also save some interest.
Conclusion: Interest rate does not change over the loan term. Interest is computed by compounding on a similar repayment frequency selected, i.e. weekly, fortnightly, monthly. In practice, interest compounding frequency may not be the same as repayment frequency.