The Bureau of the Fiscal Service, a division of the U.S. Department of the Treasury, provides a monthly compounding interest calculator. This online calculator allows people to automatically determine the amount of monthly compounding interest owed on payments made after the payment due date.Know More
To use this calculator, individuals must enter the numbers of days late, the number of months late, the amount of the invoice in which payment was made late and the "Prompt Payment" interest rate, which is pre-populated in the box. If a payment is 30 days late or fewer, borrowers can use the simple daily interest calculator, also available on this site.
Before a business can charge customers a late fee, they must first spell out the terms of the finance charge in writing. The first invoice sent must include a due date. This can be as simple as “net 30 days” or a specific due date at the bottom of the invoice. The percentage amount is clearly stated, and the customer must also be informed that past-due bills incur a late fee.
Most accounting software calculates finance charges, but knowing the process is helpful for both business owners and customers. The finance percentage should be calculated based on a full month. First, the daily percentage rate is determined. If the finance charge is 2 percent per month, that amount is multiplied by 0.03, which results in 1/30th of 2. This gives a daily rate of 0.06 percent. The amount due is multiplied by the daily rate. For example, if $200 is owed, then 200 is multiplied by 0.06 to get a daily finance charge of $1.20. If the payment is 20 days late, the charge is $1.20 for 20 days, for a total of $200 plus $24 in finance charges.Learn More
Indivisibility, perishability, tendency to fluctuate erratically and variations in quality are some disadvantages of commodity money. Commodity money is any form of currency that can serve another purpose apart from its use as money. Examples of commodity money include maize, cattle, gold, silver and olive oil.Full Answer >
In order to calculate the market price per share, you must know the price per share on a given date as well as the number of outstanding shares of stock. You also have to find out if the stock pays dividends. Put these values in a formula to determine the market price per share.Full Answer >
Depreciation recapture is calculated by adding back the depreciation expense to date that has been taken on an eligible asset after it has been sold, notes About.com. The purpose of the depreciation recapture is to properly allocate tax rates to a gain on the sale of an asset.Full Answer >
The amount of time a person has to pay on a car loan depends on the laws governing the area they live in, as well as on contractual agreements with the car loan company. According to the Federal Trade Commission, some creditors are allowed to seize vehicles the moment the loan goes into default. Usually, default is legally defined as not making a payment on time.Full Answer >