dharma.js > Adapters
● simpleInterestLoan: SimpleInterestLoanAdapter
An instance of the simple interest loan adapter, which encapsulates the logic governing a simple interest loan.
Simple interest can be calculated as follows:
Simple Interest = Principal x Interest Rate x Term of the loan
To make this more concrete, a creditor could issue a loan of 10 ether (the principal) over a period of 2 years (the term) at a rate of 10% (the interest rate).
By plugging these values into the above equation we're able to calculate the simple interest on this loan as follows:
10 ether 2 years 10% = 2 ether