Common use of Calculating Interest Clause in Contracts

Calculating Interest. 6.1 We calculate interest daily by multiplying the balance owing on your account by the daily percentage rate at the end of each day. The daily percentage rate is the annual percentage rate divided by 365. 6.2 If you don’t make a payment when due, you’ll also need to pay default interest on the overdue amount. Default interest is calculated by multiplying your overdue amount at the end of each day by the daily default interest rate. The daily default interest rate is the default interest rate divided by 365.

Calculating Interest. 6.1 We calculate interest daily by multiplying the balance owing on your account by the daily percentage rate at the end of each day. The daily percentage rate is the annual percentage rate divided by 365. 6.2 If you don’t make a payment when due, you’ll also need to pay default interest on the overdue amount. Default interest is calculated by multiplying your overdue amount at the end of each day by the daily default interest rate. The daily default interest rate is the default interest rate divided by 365.