Common use of Method of Interest Computation Clause in Contracts

Method of Interest Computation. At the close of each monthly interest period during which credit was extended to you, the interest charge is computed by multiplying the daily- adjusted debit balance by the applicable interest rate and by the number of days during which a debit balance was outstanding and then dividing by 360. Should the applicable rate change during the interest period, separate computations will be made with respect to each rate charged for the appropriate number of days during the interest period. Interest charged is calculated on a settlement date basis. A divisor of 360 days is used in determining the interest charged. If not paid, the interest charge for credit extended to your Account at the close of the interest period is added to the opening debit balance for the next interest period.

Method of Interest Computation. At the close of each monthly interest period during which credit was extended to you, the interest charge is computed by multiplying the daily- daily-adjusted debit balance by the applicable interest rate and by the number of days during which a debit balance was outstanding and then dividing by 360. Should the applicable rate change during the interest period, separate computations will be made with respect to each rate charged for the appropriate number of days during the interest period. Interest charged is calculated on a settlement date basis. A divisor of 360 days is used in determining the interest charged. If not paid, the interest charge for credit extended to your Account at the close of the interest period is added to the opening debit balance for the next interest period.