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Interest Rate

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9 years 4 months ago #1862 by roberthunter
Interest Rate was created by roberthunter
In a contract, the only stipulation in relation to interest was that interest becomes due from 14 days after the date of the invoice. I shall be grateful if someone will advise whether the interest rate is applied daily, weekly, monthly or annually and what determines the frequency.

Thank you, Robert.

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8 years 8 months ago - 8 years 8 months ago #1908 by james@cpa.co.uk
Replied by james@cpa.co.uk on topic Re: Interest Rate
Hi Robert,

Sorry for the late reply but I have only just become a moderator.

To claim interest on the money you’re owed the rate is usually 8.5%.

To calculate this, use the steps below.

a) Work out the yearly interest: take the amount you’re claiming and multiply it by 0.085 (ie 8.5%).

b) Work out the daily interest: divide your yearly interest from step 1 by 365 (the number of days in a year).

c) Work out the total amount of interest: multiply the daily interest from step 2 by the number of days the debt has been overdue.

You can then add the daily amount for each that follows the calculation.

James

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  1. Discussions forums
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  5. The late payment of commercial debts (interest) Act.
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