How is late charges calculated when using simple interest calc method
Dear guru's,
Your assistance and guidance is required.
Customers are setup for interest calculation method of 'simple'. Now as far as I have read up this is then calculated as follows. This is based per transaction as each transaction could have different # of Days Overdue:
Amount Overdue * (Rate / 100) * (# of Days Overdue / # of Days in Period)
25864,30 * (10,25/100) * (1071/30)
So test case as follows:
Overdue Amount | Days Late | Interest | Rate | Charge |
|---|---|---|---|---|
25 864,30 | 1071 | 30 | 10,25 | 217,9 |
I dont understand how system came to 217,90 using above simple method?
What am I missing … running those numbers through the formula does not bring back 217,90….
Please advise
Thanks
Chez