Common use of Figuring the INTEREST CHARGE Clause in Contracts

Figuring the INTEREST CHARGE. We compute the INTEREST CHARGE for each Balance Category by multiplying these Average Daily Balances by the applicable Daily Periodic Rate, and then we multiply the result by the number of days in the billing period. To determine the Daily Periodic Rate for each Balance Category, we divide the applicable ANNUAL PERCENTAGE RATE in effect for the billing period by 365 (366 for leap year). The way we get the ANNUAL PERCENTAGE RATE for each Balance Category is described below under “Fixed Rate” and “Variable Rate.”

Figuring the INTEREST CHARGE. We compute the INTEREST CHARGE for each Balance Category by multiplying these the Average Daily Balances by the applicable Daily Periodic Rate, and then we multiply the result by the number of days in the billing period. To determine the Daily Periodic Rate for each Balance Category, we divide the applicable ANNUAL PERCENTAGE RATE in effect for the billing period by 365 (366 for leap year). The way we get the ANNUAL PERCENTAGE RATE for each Balance Category is described below under “Fixed Rate” and “Variable Rate.”

Figuring the INTEREST CHARGE. We compute the INTEREST CHARGE for each Balance Category by multiplying these Average Daily Balances by the applicable Daily Periodic Rate, and then we multiply the result by the number of days in the billing period. To determine the Daily Periodic Rate for each Balance Category, we divide the applicable ANNUAL PERCENTAGE RATE in effect for the billing period by 365 (366 for leap yearyears). The way we get the ANNUAL PERCENTAGE RATE for each Balance Category is described below under “Fixed RateRates” and “Variable RateRates”.”