Example 9: Transactions with File Rate of interest calculated every 30 days
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Example 9: Transactions with File Rate of interest calculated every 30 days |
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Example 9 Scenario
This example is based on the facts in Example 8. See entire scenario below for full version.
In the previous example:
| • | The interest rate was a Static Rate of 7.5% per annum. |
In this example:
| • | The interest rate is a File Rate. |
| • | The File Rate is a Tiered Rate that changes over time. |
| • | The credit supply agreement says that the relevant interest rate is the overdraft interest rate that the store's bank charges. |
| • | For easy recall, we will say that the overdraft rates are as follows: |
From Rate
4/4/2004 4%
5/5/2005 5%
6/6/2006 6%
7/7/2007 7%
8/8/2008 8%
Demonstrated Features
| ► | Introduction to tiered interest rates. |
| ► | Date v. Date/Amount tiers. |
| ► | Fow to create your own reusable interest rate file. |
| ► | How to enter tiered rates. |
| ► | Saving the Rates File as "My Overdraft Rates". |
| ► | Selecting from the File Rates menu. |
| ► | Overriding the File Rate interest interval setting. |
| ► | Examine relevant parts of the calculation result. |
Points of Interest
| ◆ | You could have an interest agreement with your own clients/customers on a similar basis. |
Multimedia Presentation
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Click icon to watch video |
Entire Scenario
There are a series of transactions on Mr Smith's account - the first one is on 16 July 2004 and the last one is on 23 November 2006, the balance is currently $6704.35.
| DATE | DESCRIPTION | AMOUNT | BALANCE |
| 16/07/2004 | Invoice No. 504 | $950.05 | $950.05 |
| 24/01/2005 | Invoice No. 505 | $1,482.18 | $2,432.23 |
| 12/10/2005 | Cheque No. 439758 | $2,772.83CR | $340.60CR |
| 05/11/2005 | Invoice No. 506 | $1,313.14 | $972.54 |
| 11/11/2005 | Dishonoured Cheque Fee | $50.00 | $1,022.54 |
| 14/01/2006 | Invoice No. 507 | $3,071.38 | $4,093.92 |
| 10/04/2006 | Cheque No. 439759 | $2,950.00CR | $1,143.92 |
| 26/05/2006 | Invoice No. 508 | $7,076.15 | $8,220.07 |
| 15/07/2006 | Cheque No. 439760 | $1,447.98CR | $6,772.09 |
| 23/11/2006 | Cheque No. 439761 | $67.74CR | $6,704.35 |
He's given a lot of business over the years and has always paid up eventually, but the account has lost too much control now.
The credit supply agreement says that interest may be charged daily at the prevailing interest rate that the store pays on its own bank overdraft account. The rates are:
From Rate
4/4/2004 4%
5/5/2005 5%
6/6/2006 6%
7/7/2007 7%
8/8/2008 8%
The credit supply agreement also says that if the customer's account goes into credit (i.e. the store owes the customer) then no interest is payable to the customer.
Interest is to be calculated every 30 days starting from the date that Mr Smith entered the credit supply agreement on 14 July 2004.
Interest is not compounded.
Payments are allocated to the best benefit of the store (i.e. the creditor).
We wish to calculate interest as at 21 September 2007.
Calculation Results
The results generated by the program are shown below.
Calculation Result
Example 9
SUMMARY
| • | Calculated interest on transactions, starting with principal of nine hundred and fifty dollars and five cents ($950.05), for the period 16/07/2004 to 21/09/2007 inclusive, a period of 1163 days. |
| • | Total interest for the period was seven hundred and forty-nine dollars and sixty-three cents ($749.63), however the amount now owing is four hundred and forty-six dollars and ninety-nine cents ($446.99) because of the allocation of debits/credits during the period. |
| • | As at 21/09/2007 the total amount owing is seven thousand four hundred and fifty-three dollars and ninety-eight cents ($7,453.98) comprised of principal of seven thousand and six dollars and ninety-nine cents ($7,006.99) and accumulated interest of four hundred and forty-six dollars and ninety-nine cents ($446.99). |
| • | Interest on $7,006.99 continues to accumulate at one dollar and thirty-four cents ($1.34) per day on and from 22/09/2007. |
TRANSACTION HISTORY BEFORE INTEREST IS TAKEN INTO ACCOUNT
| DATE | DESCRIPTION | AMOUNT | BALANCE |
| 16/07/2004 | Invoice No. 504 | $950.05 | $950.05 |
| 24/01/2005 | Invoice No. 505 | $1,482.18 | $2,432.23 |
| 12/10/2005 | Cheque No. 439758 | $2,772.83CR | $340.60CR |
| 05/11/2005 | Invoice No. 506 | $1,313.14 | $972.54 |
| 11/11/2005 | Dishonoured Cheque Fee | $50.00 | $1,022.54 |
| 14/01/2006 | Invoice No. 507 | $3,071.38 | $4,093.92 |
| 10/04/2006 | Cheque No. 439759 | $2,950.00CR | $1,143.92 |
| 26/05/2006 | Invoice No. 508 | $7,076.15 | $8,220.07 |
| 15/07/2006 | Cheque No. 439760 | $1,447.98CR | $6,772.09 |
| 23/11/2006 | Cheque No. 439761 | $67.74CR | $6,704.35 |
PARTICULARS OF INTEREST
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(a) On 16/07/2004 the opening principal was $950.05, the interest rate on debit balances was 4% per annum, the interest rate on credit balances was nil (0.0%), and the days per year base used to convert the annual interest rates into daily interest rates was 366.
(b) Debits and Credits are each applied to non-principal then to interest then to principal.
(c) Calculated interest on 13/08/2004. Interest on $950.05 (principal) at 4% per annum × 29 days (16/07/2004 to 13/08/2004 inclusive) ÷ 366 (days per year) is $3.01, resulting in a new unpaid interest balance of $3.01 ($0.00 plus $3.01).
(d) Calculated interest on 12/09/2004. Interest on $950.05 (principal) at 4% per annum × 30 days (14/08/2004 to 12/09/2004 inclusive) ÷ 366 (days per year) is $3.11, resulting in a new unpaid interest balance of $6.12 ($3.01 plus $3.11).
(e) Calculated interest on 12/10/2004. Interest on $950.05 (principal) at 4% per annum × 30 days (13/09/2004 to 12/10/2004 inclusive) ÷ 366 (days per year) is $3.11, resulting in a new unpaid interest balance of $9.23 ($6.12 plus $3.11).
(f) Calculated interest on 11/11/2004. Interest on $950.05 (principal) at 4% per annum × 30 days (13/10/2004 to 11/11/2004 inclusive) ÷ 366 (days per year) is $3.11, resulting in a new unpaid interest balance of $12.34 ($9.23 plus $3.11).
(g) Calculated interest on 11/12/2004. Interest on $950.05 (principal) at 4% per annum × 30 days (12/11/2004 to 11/12/2004 inclusive) ÷ 366 (days per year) is $3.11, resulting in a new unpaid interest balance of $15.45 ($12.34 plus $3.11).
(h) Calculated interest on 31/12/2004 because it was the last day before the days per year base changed (from 366 to 365) on 01/01/2005. Interest on $950.05 (principal) at 4% per annum × 20 days (12/12/2004 to 31/12/2004 inclusive) ÷ 366 (days per year) is $2.08, resulting in a new unpaid interest balance of $17.53 ($15.45 plus $2.08).
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(i) On 01/01/2005 the days per year base used to convert the annual interest rate into the daily interest rate changed to 365. The daily interest rate is now 0.0109589% on debit balances.
(j) Calculated interest on 10/01/2005. Interest on $950.05 (principal) at 4% per annum × 10 days (01/01/2005 to 10/01/2005 inclusive) ÷ 365 (days per year) is $1.04, resulting in a new unpaid interest balance of $18.57 ($17.53 plus $1.04).
(k) Calculated interest on 23/01/2005 because it was the last day before the balance of principal changed on 24/01/2005. Interest on $950.05 (principal) at 4% per annum × 13 days (11/01/2005 to 23/01/2005 inclusive) ÷ 365 (days per year) is $1.35, resulting in a new unpaid interest balance of $19.92 ($18.57 plus $1.35).
(l) Debit on 24/01/2005: "Invoice No. 505" $1,482.18. The entire amount was added to principal, leaving a new principal balance of $2,432.23 ($950.05 plus $1,482.18).
(m) Calculated interest on 09/02/2005. Interest on $2,432.23 (principal) at 4% per annum × 17 days (24/01/2005 to 09/02/2005 inclusive) ÷ 365 (days per year) is $4.53, resulting in a new unpaid interest balance of $24.45 ($19.92 plus $4.53).
(n) Calculated interest on 11/03/2005. Interest on $2,432.23 (principal) at 4% per annum × 30 days (10/02/2005 to 11/03/2005 inclusive) ÷ 365 (days per year) is $8.00, resulting in a new unpaid interest balance of $32.45 ($24.45 plus $8.00).
(o) Calculated interest on 10/04/2005. Interest on $2,432.23 (principal) at 4% per annum × 30 days (12/03/2005 to 10/04/2005 inclusive) ÷ 365 (days per year) is $8.00, resulting in a new unpaid interest balance of $40.45 ($32.45 plus $8.00).
(p) Calculated interest on 04/05/2005 because it was the last day before the interest rate changed on 05/05/2005. Interest on $2,432.23 (principal) at 4% per annum × 24 days (11/04/2005 to 04/05/2005 inclusive) ÷ 365 (days per year) is $6.40, resulting in a new unpaid interest balance of $46.85 ($40.45 plus $6.40).
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(q) On 05/05/2005 the interest rate on debit balances changed to 5% per annum.
(r) Calculated interest on 10/05/2005. Interest on $2,432.23 (principal) at 5% per annum × 6 days (05/05/2005 to 10/05/2005 inclusive) ÷ 365 (days per year) is $2.00, resulting in a new unpaid interest balance of $48.85 ($46.85 plus $2.00).
(s) Calculated interest on 09/06/2005. Interest on $2,432.23 (principal) at 5% per annum × 30 days (11/05/2005 to 09/06/2005 inclusive) ÷ 365 (days per year) is $10.00, resulting in a new unpaid interest balance of $58.85 ($48.85 plus $10.00).
(t) Calculated interest on 09/07/2005. Interest on $2,432.23 (principal) at 5% per annum × 30 days (10/06/2005 to 09/07/2005 inclusive) ÷ 365 (days per year) is $10.00, resulting in a new unpaid interest balance of $68.85 ($58.85 plus $10.00).
(u) Calculated interest on 08/08/2005. Interest on $2,432.23 (principal) at 5% per annum × 30 days (10/07/2005 to 08/08/2005 inclusive) ÷ 365 (days per year) is $10.00, resulting in a new unpaid interest balance of $78.85 ($68.85 plus $10.00).
(v) Calculated interest on 07/09/2005. Interest on $2,432.23 (principal) at 5% per annum × 30 days (09/08/2005 to 07/09/2005 inclusive) ÷ 365 (days per year) is $10.00, resulting in a new unpaid interest balance of $88.85 ($78.85 plus $10.00).
(w) Calculated interest on 07/10/2005. Interest on $2,432.23 (principal) at 5% per annum × 30 days (08/09/2005 to 07/10/2005 inclusive) ÷ 365 (days per year) is $10.00, resulting in a new unpaid interest balance of $98.85 ($88.85 plus $10.00).
(x) Calculated interest on 11/10/2005 because it was the last day before the balance of principal changed on 12/10/2005. Interest on $2,432.23 (principal) at 5% per annum × 4 days (08/10/2005 to 11/10/2005 inclusive) ÷ 365 (days per year) is $1.33, resulting in a new unpaid interest balance of $100.18 ($98.85 plus $1.33).
(y) Credit on 12/10/2005: "Cheque No. 439758" $2,772.83CR. The payment was applied partly to interest ($100.18) and partly to principal ($2,672.65) leaving a new unpaid interest balance of $0.00 ($100.18 minus $100.18) and a new principal balance of $240.42CR ($2,432.23 minus $2,672.65).
(z) Calculated interest on 04/11/2005 because it was the last day before the balance of principal changed on 05/11/2005. Interest on $240.42CR (principal) at 0% per annum × 24 days (12/10/2005 to 04/11/2005 inclusive) ÷ 365 (days per year) is $0.00, resulting in a new unpaid interest balance of $0.00 ($0.00 plus $0.00).
(aa) Debit on 05/11/2005: "Invoice No. 506" $1,313.14. The entire amount was added to principal, leaving a new principal balance of $1,072.72 ($240.42CR plus $1,313.14).
(ab) Calculated interest on 06/11/2005. Interest on $1,072.72 (principal) at 5% per annum × 2 days (05/11/2005 to 06/11/2005 inclusive) ÷ 365 (days per year) is $0.29, resulting in a new unpaid interest balance of $0.29 ($0.00 plus $0.29).
(ac) Calculated interest on 10/11/2005 because it was the last day before the balance of principal changed on 11/11/2005. Interest on $1,072.72 (principal) at 5% per annum × 4 days (07/11/2005 to 10/11/2005 inclusive) ÷ 365 (days per year) is $0.59, resulting in a new unpaid interest balance of $0.88 ($0.29 plus $0.59).
(ad) Debit on 11/11/2005: "Dishonoured Cheque Fee" $50.00. The entire amount was added to principal, leaving a new principal balance of $1,122.72 ($1,072.72 plus $50.00).
(ae) Calculated interest on 06/12/2005. Interest on $1,122.72 (principal) at 5% per annum × 26 days (11/11/2005 to 06/12/2005 inclusive) ÷ 365 (days per year) is $4.00, resulting in a new unpaid interest balance of $4.88 ($0.88 plus $4.00).
(af) Calculated interest on 05/01/2006. Interest on $1,122.72 (principal) at 5% per annum × 30 days (07/12/2005 to 05/01/2006 inclusive) ÷ 365 (days per year) is $4.61, resulting in a new unpaid interest balance of $9.49 ($4.88 plus $4.61).
(ag) Calculated interest on 13/01/2006 because it was the last day before the balance of principal changed on 14/01/2006. Interest on $1,122.72 (principal) at 5% per annum × 8 days (06/01/2006 to 13/01/2006 inclusive) ÷ 365 (days per year) is $1.23, resulting in a new unpaid interest balance of $10.72 ($9.49 plus $1.23).
(ah) Debit on 14/01/2006: "Invoice No. 507" $3,071.38. The entire amount was added to principal, leaving a new principal balance of $4,194.10 ($1,122.72 plus $3,071.38).
(ai) Calculated interest on 04/02/2006. Interest on $4,194.10 (principal) at 5% per annum × 22 days (14/01/2006 to 04/02/2006 inclusive) ÷ 365 (days per year) is $12.64, resulting in a new unpaid interest balance of $23.36 ($10.72 plus $12.64).
(aj) Calculated interest on 06/03/2006. Interest on $4,194.10 (principal) at 5% per annum × 30 days (05/02/2006 to 06/03/2006 inclusive) ÷ 365 (days per year) is $17.24, resulting in a new unpaid interest balance of $40.60 ($23.36 plus $17.24).
(ak) Calculated interest on 05/04/2006. Interest on $4,194.10 (principal) at 5% per annum × 30 days (07/03/2006 to 05/04/2006 inclusive) ÷ 365 (days per year) is $17.24, resulting in a new unpaid interest balance of $57.84 ($40.60 plus $17.24).
(al) Calculated interest on 09/04/2006 because it was the last day before the balance of principal changed on 10/04/2006. Interest on $4,194.10 (principal) at 5% per annum × 4 days (06/04/2006 to 09/04/2006 inclusive) ÷ 365 (days per year) is $2.30, resulting in a new unpaid interest balance of $60.14 ($57.84 plus $2.30).
(am) Credit on 10/04/2006: "Cheque No. 439759" $2,950.00CR. The payment was applied partly to interest ($60.14) and partly to principal ($2,889.86) leaving a new unpaid interest balance of $0.00 ($60.14 minus $60.14) and a new principal balance of $1,304.24 ($4,194.10 minus $2,889.86).
(an) Calculated interest on 05/05/2006. Interest on $1,304.24 (principal) at 5% per annum × 26 days (10/04/2006 to 05/05/2006 inclusive) ÷ 365 (days per year) is $4.65, resulting in a new unpaid interest balance of $4.65 ($0.00 plus $4.65).
(ao) Calculated interest on 25/05/2006 because it was the last day before the balance of principal changed on 26/05/2006. Interest on $1,304.24 (principal) at 5% per annum × 20 days (06/05/2006 to 25/05/2006 inclusive) ÷ 365 (days per year) is $3.57, resulting in a new unpaid interest balance of $8.22 ($4.65 plus $3.57).
(ap) Debit on 26/05/2006: "Invoice No. 508" $7,076.15. The entire amount was added to principal, leaving a new principal balance of $8,380.39 ($1,304.24 plus $7,076.15).
(aq) Calculated interest on 04/06/2006. Interest on $8,380.39 (principal) at 5% per annum × 10 days (26/05/2006 to 04/06/2006 inclusive) ÷ 365 (days per year) is $11.48, resulting in a new unpaid interest balance of $19.70 ($8.22 plus $11.48).
(ar) Calculated interest on 05/06/2006 because it was the last day before the interest rate changed on 06/06/2006. Interest on $8,380.39 (principal) at 5% per annum × 1 day (05/06/2006) ÷ 365 (days per year) is $1.15, resulting in a new unpaid interest balance of $20.85 ($19.70 plus $1.15).
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(as) On 06/06/2006 the interest rate on debit balances changed to 6% per annum.
(at) Calculated interest on 04/07/2006. Interest on $8,380.39 (principal) at 6% per annum × 29 days (06/06/2006 to 04/07/2006 inclusive) ÷ 365 (days per year) is $39.95, resulting in a new unpaid interest balance of $60.80 ($20.85 plus $39.95).
(au) Calculated interest on 14/07/2006 because it was the last day before the balance of principal changed on 15/07/2006. Interest on $8,380.39 (principal) at 6% per annum × 10 days (05/07/2006 to 14/07/2006 inclusive) ÷ 365 (days per year) is $13.78, resulting in a new unpaid interest balance of $74.58 ($60.80 plus $13.78).
(av) Credit on 15/07/2006: "Cheque No. 439760" $1,447.98CR. The payment was applied partly to interest ($74.58) and partly to principal ($1,373.40) leaving a new unpaid interest balance of $0.00 ($74.58 minus $74.58) and a new principal balance of $7,006.99 ($8,380.39 minus $1,373.40).
(aw) Calculated interest on 03/08/2006. Interest on $7,006.99 (principal) at 6% per annum × 20 days (15/07/2006 to 03/08/2006 inclusive) ÷ 365 (days per year) is $23.04, resulting in a new unpaid interest balance of $23.04 ($0.00 plus $23.04).
(ax) Calculated interest on 02/09/2006. Interest on $7,006.99 (principal) at 6% per annum × 30 days (04/08/2006 to 02/09/2006 inclusive) ÷ 365 (days per year) is $34.56, resulting in a new unpaid interest balance of $57.60 ($23.04 plus $34.56).
(ay) Calculated interest on 02/10/2006. Interest on $7,006.99 (principal) at 6% per annum × 30 days (03/09/2006 to 02/10/2006 inclusive) ÷ 365 (days per year) is $34.56, resulting in a new unpaid interest balance of $92.16 ($57.60 plus $34.56).
(az) Calculated interest on 01/11/2006. Interest on $7,006.99 (principal) at 6% per annum × 30 days (03/10/2006 to 01/11/2006 inclusive) ÷ 365 (days per year) is $34.56, resulting in a new unpaid interest balance of $126.72 ($92.16 plus $34.56).
(ba) Calculated interest on 22/11/2006 because it was the last day before the balance of principal changed on 23/11/2006. Interest on $7,006.99 (principal) at 6% per annum × 21 days (02/11/2006 to 22/11/2006 inclusive) ÷ 365 (days per year) is $24.19, resulting in a new unpaid interest balance of $150.91 ($126.72 plus $24.19).
(bb) Credit on 23/11/2006: "Cheque No. 439761" $67.74CR. The payment was applied entirely to interest, leaving a new unpaid interest balance of $83.17 ($150.91 minus $67.74).
(bc) Calculated interest on 01/12/2006. Interest on $7,006.99 (principal) at 6% per annum × 9 days (23/11/2006 to 01/12/2006 inclusive) ÷ 365 (days per year) is $10.37, resulting in a new unpaid interest balance of $93.54 ($83.17 plus $10.37).
(bd) Calculated interest on 31/12/2006. Interest on $7,006.99 (principal) at 6% per annum × 30 days (02/12/2006 to 31/12/2006 inclusive) ÷ 365 (days per year) is $34.56, resulting in a new unpaid interest balance of $128.10 ($93.54 plus $34.56).
(be) Calculated interest on 30/01/2007. Interest on $7,006.99 (principal) at 6% per annum × 30 days (01/01/2007 to 30/01/2007 inclusive) ÷ 365 (days per year) is $34.56, resulting in a new unpaid interest balance of $162.66 ($128.10 plus $34.56).
(bf) Calculated interest on 01/03/2007. Interest on $7,006.99 (principal) at 6% per annum × 30 days (31/01/2007 to 01/03/2007 inclusive) ÷ 365 (days per year) is $34.56, resulting in a new unpaid interest balance of $197.22 ($162.66 plus $34.56).
(bg) Calculated interest on 31/03/2007. Interest on $7,006.99 (principal) at 6% per annum × 30 days (02/03/2007 to 31/03/2007 inclusive) ÷ 365 (days per year) is $34.56, resulting in a new unpaid interest balance of $231.78 ($197.22 plus $34.56).
(bh) Calculated interest on 30/04/2007. Interest on $7,006.99 (principal) at 6% per annum × 30 days (01/04/2007 to 30/04/2007 inclusive) ÷ 365 (days per year) is $34.56, resulting in a new unpaid interest balance of $266.34 ($231.78 plus $34.56).
(bi) Calculated interest on 30/05/2007. Interest on $7,006.99 (principal) at 6% per annum × 30 days (01/05/2007 to 30/05/2007 inclusive) ÷ 365 (days per year) is $34.56, resulting in a new unpaid interest balance of $300.90 ($266.34 plus $34.56).
(bj) Calculated interest on 29/06/2007. Interest on $7,006.99 (principal) at 6% per annum × 30 days (31/05/2007 to 29/06/2007 inclusive) ÷ 365 (days per year) is $34.56, resulting in a new unpaid interest balance of $335.46 ($300.90 plus $34.56).
(bk) Calculated interest on 06/07/2007 because it was the last day before the interest rate changed on 07/07/2007. Interest on $7,006.99 (principal) at 6% per annum × 7 days (30/06/2007 to 06/07/2007 inclusive) ÷ 365 (days per year) is $8.06, resulting in a new unpaid interest balance of $343.52 ($335.46 plus $8.06).
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(bl) On 07/07/2007 the interest rate on debit balances changed to 7% per annum.
(bm) Calculated interest on 29/07/2007. Interest on $7,006.99 (principal) at 7% per annum × 23 days (07/07/2007 to 29/07/2007 inclusive) ÷ 365 (days per year) is $30.91, resulting in a new unpaid interest balance of $374.43 ($343.52 plus $30.91).
(bn) Calculated interest on 28/08/2007. Interest on $7,006.99 (principal) at 7% per annum × 30 days (30/07/2007 to 28/08/2007 inclusive) ÷ 365 (days per year) is $40.31, resulting in a new unpaid interest balance of $414.74 ($374.43 plus $40.31).
(bo) Calculated interest on 21/09/2007. Interest on $7,006.99 (principal) at 7% per annum × 24 days (29/08/2007 to 21/09/2007 inclusive) ÷ 365 (days per year) is $32.25, resulting in a new unpaid interest balance of $446.99 ($414.74 plus $32.25).
(bp) As at 21/09/2007 the total amount owing is seven thousand four hundred and fifty-three dollars and ninety-eight cents ($7,453.98) comprised of principal of seven thousand and six dollars and ninety-nine cents ($7,006.99) and accumulated interest of four hundred and forty-six dollars and ninety-nine cents ($446.99).
(bq) Total interest for the period 16/07/2004 to 21/09/2007 (1163 days) was seven hundred and forty-nine dollars and sixty-three cents ($749.63).
(br) Interest on $7,006.99 continues to accumulate at one dollar and thirty-four cents ($1.34) per day on and from 22/09/2007.
Calculation Result
Example 9
TRANSACTION HISTORY BEFORE INTEREST IS TAKEN INTO ACCOUNT
| DATE | DESCRIPTION | AMOUNT | BALANCE |
| 16/07/2004 | Invoice No. 504 | $950.05 | $950.05 |
| 24/01/2005 | Invoice No. 505 | $1,482.18 | $2,432.23 |
| 12/10/2005 | Cheque No. 439758 | $2,772.83CR | $340.60CR |
| 05/11/2005 | Invoice No. 506 | $1,313.14 | $972.54 |
| 11/11/2005 | Dishonoured Cheque Fee | $50.00 | $1,022.54 |
| 14/01/2006 | Invoice No. 507 | $3,071.38 | $4,093.92 |
| 10/04/2006 | Cheque No. 439759 | $2,950.00CR | $1,143.92 |
| 26/05/2006 | Invoice No. 508 | $7,076.15 | $8,220.07 |
| 15/07/2006 | Cheque No. 439760 | $1,447.98CR | $6,772.09 |
| 23/11/2006 | Cheque No. 439761 | $67.74CR | $6,704.35 |
INTEREST CALCULATION TABLE
| DATE | DESCRIPTION | DAYS | AMOUNT | BALANCE | PRINCIPAL | INTEREST |
| 16/07/2004 | Interest rate started at 4% on debit balances (0.01092896% per day). | $950.05DR | $950.05DR | $0.00DR | ||
| 13/08/2004 | Interest (16/07/2004 to 13/08/2004 inclusive) $950.05 × 0.01092896% × 29 days = $3.01. | 29 | $3.01DR | $953.06DR | $950.05DR | $3.01DR |
| 12/09/2004 | Interest (14/08/2004 to 12/09/2004 inclusive) $950.05 × 0.01092896% × 30 days = $3.11. | 30 | $3.11DR | $956.17DR | $950.05DR | $6.12DR |
| 12/10/2004 | Interest (13/09/2004 to 12/10/2004 inclusive) $950.05 × 0.01092896% × 30 days = $3.11. | 30 | $3.11DR | $959.28DR | $950.05DR | $9.23DR |
| 11/11/2004 | Interest (13/10/2004 to 11/11/2004 inclusive) $950.05 × 0.01092896% × 30 days = $3.11. | 30 | $3.11DR | $962.39DR | $950.05DR | $12.34DR |
| 11/12/2004 | Interest (12/11/2004 to 11/12/2004 inclusive) $950.05 × 0.01092896% × 30 days = $3.11. | 30 | $3.11DR | $965.50DR | $950.05DR | $15.45DR |
| 31/12/2004 | Interest (12/12/2004 to 31/12/2004 inclusive) $950.05 × 0.01092896% × 20 days = $2.08. | 20 | $2.08DR | $967.58DR | $950.05DR | $17.53DR |
| 01/01/2005 | Days per year changed to 365. Daily interest rate now 0.0109589% on debit balances. | $967.58DR | $950.05DR | $17.53DR | ||
| 10/01/2005 | Interest (01/01/2005 to 10/01/2005 inclusive) $950.05 × 0.0109589% × 10 days = $1.04. | 10 | $1.04DR | $968.62DR | $950.05DR | $18.57DR |
| 23/01/2005 | Interest (11/01/2005 to 23/01/2005 inclusive) $950.05 × 0.0109589% × 13 days = $1.35. | 13 | $1.35DR | $969.97DR | $950.05DR | $19.92DR |
| 24/01/2005 | Invoice No. 505. Entire amount added to principal. | $1,482.18DR | $2,452.15DR | $2,432.23DR | $19.92DR | |
| 09/02/2005 | Interest (24/01/2005 to 09/02/2005 inclusive) $2,432.23 × 0.0109589% × 17 days = $4.53. | 17 | $4.53DR | $2,456.68DR | $2,432.23DR | $24.45DR |
| 11/03/2005 | Interest (10/02/2005 to 11/03/2005 inclusive) $2,432.23 × 0.0109589% × 30 days = $8.00. | 30 | $8.00DR | $2,464.68DR | $2,432.23DR | $32.45DR |
| 10/04/2005 | Interest (12/03/2005 to 10/04/2005 inclusive) $2,432.23 × 0.0109589% × 30 days = $8.00. | 30 | $8.00DR | $2,472.68DR | $2,432.23DR | $40.45DR |
| 04/05/2005 | Interest (11/04/2005 to 04/05/2005 inclusive) $2,432.23 × 0.0109589% × 24 days = $6.40. | 24 | $6.40DR | $2,479.08DR | $2,432.23DR | $46.85DR |
| 05/05/2005 | Interest rate on debit balances changed to 5% per annum (currently 0.01369863% per day). | $2,479.08DR | $2,432.23DR | $46.85DR | ||
| 10/05/2005 | Interest (05/05/2005 to 10/05/2005 inclusive) $2,432.23 × 0.01369863% × 6 days = $2.00. | 6 | $2.00DR | $2,481.08DR | $2,432.23DR | $48.85DR |
| 09/06/2005 | Interest (11/05/2005 to 09/06/2005 inclusive) $2,432.23 × 0.01369863% × 30 days = $10.00. | 30 | $10.00DR | $2,491.08DR | $2,432.23DR | $58.85DR |
| 09/07/2005 | Interest (10/06/2005 to 09/07/2005 inclusive) $2,432.23 × 0.01369863% × 30 days = $10.00. | 30 | $10.00DR | $2,501.08DR | $2,432.23DR | $68.85DR |
| 08/08/2005 | Interest (10/07/2005 to 08/08/2005 inclusive) $2,432.23 × 0.01369863% × 30 days = $10.00. | 30 | $10.00DR | $2,511.08DR | $2,432.23DR | $78.85DR |
| 07/09/2005 | Interest (09/08/2005 to 07/09/2005 inclusive) $2,432.23 × 0.01369863% × 30 days = $10.00. | 30 | $10.00DR | $2,521.08DR | $2,432.23DR | $88.85DR |
| 07/10/2005 | Interest (08/09/2005 to 07/10/2005 inclusive) $2,432.23 × 0.01369863% × 30 days = $10.00. | 30 | $10.00DR | $2,531.08DR | $2,432.23DR | $98.85DR |
| 11/10/2005 | Interest (08/10/2005 to 11/10/2005 inclusive) $2,432.23 × 0.01369863% × 4 days = $1.33. | 4 | $1.33DR | $2,532.41DR | $2,432.23DR | $100.18DR |
| 12/10/2005 | Cheque No. 439758. Payment was applied partly to interest ($100.18) and partly to principal ($2,672.65). | $2,772.83CR | $240.42CR | $240.42CR | $0.00DR | |
| 04/11/2005 | Interest (12/10/2005 to 04/11/2005 inclusive) $240.42CR × 0% × 24 days = $0.00. | 24 | Nil | $240.42CR | $240.42CR | $0.00DR |
| 05/11/2005 | Invoice No. 506. Entire amount added to principal. | $1,313.14DR | $1,072.72DR | $1,072.72DR | $0.00DR | |
| 06/11/2005 | Interest (05/11/2005 to 06/11/2005 inclusive) $1,072.72 × 0.01369863% × 2 days = $0.29. | 2 | $0.29DR | $1,073.01DR | $1,072.72DR | $0.29DR |
| 10/11/2005 | Interest (07/11/2005 to 10/11/2005 inclusive) $1,072.72 × 0.01369863% × 4 days = $0.59. | 4 | $0.59DR | $1,073.60DR | $1,072.72DR | $0.88DR |
| 11/11/2005 | Dishonoured Cheque Fee. Entire amount added to principal. | $50.00DR | $1,123.60DR | $1,122.72DR | $0.88DR | |
| 06/12/2005 | Interest (11/11/2005 to 06/12/2005 inclusive) $1,122.72 × 0.01369863% × 26 days = $4.00. | 26 | $4.00DR | $1,127.60DR | $1,122.72DR | $4.88DR |
| 05/01/2006 | Interest (07/12/2005 to 05/01/2006 inclusive) $1,122.72 × 0.01369863% × 30 days = $4.61. | 30 | $4.61DR | $1,132.21DR | $1,122.72DR | $9.49DR |
| 13/01/2006 | Interest (06/01/2006 to 13/01/2006 inclusive) $1,122.72 × 0.01369863% × 8 days = $1.23. | 8 | $1.23DR | $1,133.44DR | $1,122.72DR | $10.72DR |
| 14/01/2006 | Invoice No. 507. Entire amount added to principal. | $3,071.38DR | $4,204.82DR | $4,194.10DR | $10.72DR | |
| 04/02/2006 | Interest (14/01/2006 to 04/02/2006 inclusive) $4,194.10 × 0.01369863% × 22 days = $12.64. | 22 | $12.64DR | $4,217.46DR | $4,194.10DR | $23.36DR |
| 06/03/2006 | Interest (05/02/2006 to 06/03/2006 inclusive) $4,194.10 × 0.01369863% × 30 days = $17.24. | 30 | $17.24DR | $4,234.70DR | $4,194.10DR | $40.60DR |
| 05/04/2006 | Interest (07/03/2006 to 05/04/2006 inclusive) $4,194.10 × 0.01369863% × 30 days = $17.24. | 30 | $17.24DR | $4,251.94DR | $4,194.10DR | $57.84DR |
| 09/04/2006 | Interest (06/04/2006 to 09/04/2006 inclusive) $4,194.10 × 0.01369863% × 4 days = $2.30. | 4 | $2.30DR | $4,254.24DR | $4,194.10DR | $60.14DR |
| 10/04/2006 | Cheque No. 439759. Payment was applied partly to interest ($60.14) and partly to principal ($2,889.86). | $2,950.00CR | $1,304.24DR | $1,304.24DR | $0.00DR | |
| 05/05/2006 | Interest (10/04/2006 to 05/05/2006 inclusive) $1,304.24 × 0.01369863% × 26 days = $4.65. | 26 | $4.65DR | $1,308.89DR | $1,304.24DR | $4.65DR |
| 25/05/2006 | Interest (06/05/2006 to 25/05/2006 inclusive) $1,304.24 × 0.01369863% × 20 days = $3.57. | 20 | $3.57DR | $1,312.46DR | $1,304.24DR | $8.22DR |
| 26/05/2006 | Invoice No. 508. Entire amount added to principal. | $7,076.15DR | $8,388.61DR | $8,380.39DR | $8.22DR | |
| 04/06/2006 | Interest (26/05/2006 to 04/06/2006 inclusive) $8,380.39 × 0.01369863% × 10 days = $11.48. | 10 | $11.48DR | $8,400.09DR | $8,380.39DR | $19.70DR |
| 05/06/2006 | Interest (05/06/2006) $8,380.39 × 0.01369863% × 1 day = $1.15. | 1 | $1.15DR | $8,401.24DR | $8,380.39DR | $20.85DR |
| 06/06/2006 | Interest rate on debit balances changed to 6% per annum (currently 0.01643836% per day). | $8,401.24DR | $8,380.39DR | $20.85DR | ||
| 04/07/2006 | Interest (06/06/2006 to 04/07/2006 inclusive) $8,380.39 × 0.01643836% × 29 days = $39.95. | 29 | $39.95DR | $8,441.19DR | $8,380.39DR | $60.80DR |
| 14/07/2006 | Interest (05/07/2006 to 14/07/2006 inclusive) $8,380.39 × 0.01643836% × 10 days = $13.78. | 10 | $13.78DR | $8,454.97DR | $8,380.39DR | $74.58DR |
| 15/07/2006 | Cheque No. 439760. Payment was applied partly to interest ($74.58) and partly to principal ($1,373.40). | $1,447.98CR | $7,006.99DR | $7,006.99DR | $0.00DR | |
| 03/08/2006 | Interest (15/07/2006 to 03/08/2006 inclusive) $7,006.99 × 0.01643836% × 20 days = $23.04. | 20 | $23.04DR | $7,030.03DR | $7,006.99DR | $23.04DR |
| 02/09/2006 | Interest (04/08/2006 to 02/09/2006 inclusive) $7,006.99 × 0.01643836% × 30 days = $34.56. | 30 | $34.56DR | $7,064.59DR | $7,006.99DR | $57.60DR |
| 02/10/2006 | Interest (03/09/2006 to 02/10/2006 inclusive) $7,006.99 × 0.01643836% × 30 days = $34.56. | 30 | $34.56DR | $7,099.15DR | $7,006.99DR | $92.16DR |
| 01/11/2006 | Interest (03/10/2006 to 01/11/2006 inclusive) $7,006.99 × 0.01643836% × 30 days = $34.56. | 30 | $34.56DR | $7,133.71DR | $7,006.99DR | $126.72DR |
| 22/11/2006 | Interest (02/11/2006 to 22/11/2006 inclusive) $7,006.99 × 0.01643836% × 21 days = $24.19. | 21 | $24.19DR | $7,157.90DR | $7,006.99DR | $150.91DR |
| 23/11/2006 | Cheque No. 439761. Payment applied entirely to interest. | $67.74CR | $7,090.16DR | $7,006.99DR | $83.17DR | |
| 01/12/2006 | Interest (23/11/2006 to 01/12/2006 inclusive) $7,006.99 × 0.01643836% × 9 days = $10.37. | 9 | $10.37DR | $7,100.53DR | $7,006.99DR | $93.54DR |
| 31/12/2006 | Interest (02/12/2006 to 31/12/2006 inclusive) $7,006.99 × 0.01643836% × 30 days = $34.56. | 30 | $34.56DR | $7,135.09DR | $7,006.99DR | $128.10DR |
| 30/01/2007 | Interest (01/01/2007 to 30/01/2007 inclusive) $7,006.99 × 0.01643836% × 30 days = $34.56. | 30 | $34.56DR | $7,169.65DR | $7,006.99DR | $162.66DR |
| 01/03/2007 | Interest (31/01/2007 to 01/03/2007 inclusive) $7,006.99 × 0.01643836% × 30 days = $34.56. | 30 | $34.56DR | $7,204.21DR | $7,006.99DR | $197.22DR |
| 31/03/2007 | Interest (02/03/2007 to 31/03/2007 inclusive) $7,006.99 × 0.01643836% × 30 days = $34.56. | 30 | $34.56DR | $7,238.77DR | $7,006.99DR | $231.78DR |
| 30/04/2007 | Interest (01/04/2007 to 30/04/2007 inclusive) $7,006.99 × 0.01643836% × 30 days = $34.56. | 30 | $34.56DR | $7,273.33DR | $7,006.99DR | $266.34DR |
| 30/05/2007 | Interest (01/05/2007 to 30/05/2007 inclusive) $7,006.99 × 0.01643836% × 30 days = $34.56. | 30 | $34.56DR | $7,307.89DR | $7,006.99DR | $300.90DR |
| 29/06/2007 | Interest (31/05/2007 to 29/06/2007 inclusive) $7,006.99 × 0.01643836% × 30 days = $34.56. | 30 | $34.56DR | $7,342.45DR | $7,006.99DR | $335.46DR |
| 06/07/2007 | Interest (30/06/2007 to 06/07/2007 inclusive) $7,006.99 × 0.01643836% × 7 days = $8.06. | 7 | $8.06DR | $7,350.51DR | $7,006.99DR | $343.52DR |
| 07/07/2007 | Interest rate on debit balances changed to 7% per annum (currently 0.01917808% per day). | $7,350.51DR | $7,006.99DR | $343.52DR | ||
| 29/07/2007 | Interest (07/07/2007 to 29/07/2007 inclusive) $7,006.99 × 0.01917808% × 23 days = $30.91. | 23 | $30.91DR | $7,381.42DR | $7,006.99DR | $374.43DR |
| 28/08/2007 | Interest (30/07/2007 to 28/08/2007 inclusive) $7,006.99 × 0.01917808% × 30 days = $40.31. | 30 | $40.31DR | $7,421.73DR | $7,006.99DR | $414.74DR |
| 21/09/2007 | Interest (29/08/2007 to 21/09/2007 inclusive) $7,006.99 × 0.01917808% × 24 days = $32.25. | 24 | $32.25DR | $7,453.98DR | $7,006.99DR | $446.99DR |
| Final Balance | 1163 | $7,453.98DR | $7,006.99DR | $446.99DR |
