daily interest rate

Mr_love_monkey · 09-03-2009, 21:25

OK, I'm having trouble working this out, and I need to get it right.

Say, for example, someone owes me Ã‚Â£1000 - and the terms say that after 30 days of the debt being due I can charge then 8% + the base rate at the time the debt became due (1%) a day- so I can charge them 9% per day.

How would I work out the daily amount?

I thought it would be (1000*9)/365 - but Ã‚Â£24 a day seems steep...

anyone?

punky · 09-03-2009, 21:28

Its not (1000 * 9), its (1000 * 0.09). 9 percent means 9 per hundred or 9/100 = 0.09

So its (1000 * 0.09) / 365 = 25p per day in interest.

Mr_love_monkey · 09-03-2009, 21:30

Quote:

Originally Posted by punky

Its not (1000 * 9), its (1000 * 0.09). 9 percent means 9 per hundred or 9/100 = 0.09

So its (1000 * 0.09) / 365 = Ã‚Â£2.4 per day in interest.

ah.. that's where I was going wrong.. thanks..!

---------- Post added at 22:30 ---------- Previous post was at 22:29 ----------

Quote:

Originally Posted by punky

Its not (1000 * 9), its (1000 * 0.09). 9 percent means 9 per hundred or 9/100 = 0.09

So its (1000 * 0.09) / 365 = Ã‚Â£2.4 per day in interest.

is it? or is it 24p a day?

dev · 09-03-2009, 21:33

is the base rate not 0.5% now?

Mr_love_monkey · 09-03-2009, 21:33

Quote:

Originally Posted by dev

is the base rate not 0.5% now?

it is -but at the date the debt became over due it was 1%

punky · 09-03-2009, 21:38

Quote:

Originally Posted by Mr_love_monkey

ah.. that's where I was going wrong.. thanks..!

---------- Post added at 22:30 ---------- Previous post was at 22:29 ----------

is it? or is it 24p a day?

I checked my calculation after i posted and before you did and I did make a mistake somewhere. Its 0.2645 pounds which is 25p, rounding up.

Mr_love_monkey · 09-03-2009, 21:40

Quote:

Originally Posted by punky

I checked my calculation after i posted and before you did and I did make a mistake somewhere. Its 0.2645 pounds which is 25p, rounding up.

thanks

- damn I thought I was going to be in the money there

bloody agency, late payment, grumble, grumble..

punky · 09-03-2009, 21:45

One thing I overlooked, the interest should be compounded as day one will be (Ã‚Â£1000 + 9%) and then day 2 will be ((Ã‚Â£1000 + 9%) + 9%).

Using an online calculator brings it out at Ã‚Â£93.89 over the year and so 26p (Ã‚Â£0.257) per day.

http://www.mw-plus.com/webdic.php?fo....00&CalcMode=1

Mr_love_monkey · 09-03-2009, 21:51

Quote:

Originally Posted by punky

One thing I overlooked, the interest should be compounded as day one will be (Ã‚Â£1000 + 9%) and then day 2 will be ((Ã‚Â£1000 + 9%) + 9%).

Using an online calculator brings it out at Ã‚Â£93.89 over the year and so 26p (Ã‚Â£0.257) per day.

http://www.mw-plus.com/webdic.php?fo....00&CalcMode=1

I don't think I'm allowed compound interest from what I understand of the 'Late Payment of Commercial Debts (Interest) Act of 1998'

lucy7 · 09-03-2009, 22:00

Wish I could charge a charge!
Invoces sent out, and I wait and wait and wait.
This time last year I was owed over 6 grand!
Got it in the end, but after several calls and knocks on their door!

danielf · 09-03-2009, 22:09

Quote:

Originally Posted by punky

One thing I overlooked, the interest should be compounded as day one will be (Ã‚Â£1000 + 9%) and then day 2 will be ((Ã‚Â£1000 + 9%) + 9%).

Using an online calculator brings it out at Ã‚Â£93.89 over the year and so 26p (Ã‚Â£0.257) per day.

http://www.mw-plus.com/webdic.php?fo....00&CalcMode=1

Online calculator... Pah. Recursion is your friend

v0id · 09-03-2009, 23:22

Quote:

Originally Posted by punky

I checked my calculation after i posted and before you did and I did make a mistake somewhere. Its 0.2645 pounds which is 25p, rounding up.

That'd be 27p

Edit: oops, should read a few more posts before posting

**Damien** · 10-03-2009, 07:44

Quote:

Originally Posted by danielf

Online calculator... Pah. Recursion is your friend

No, it is not..

Saaf_laandon_mo · 10-03-2009, 07:53

Quote:

Originally Posted by lucy7

Wish I could charge a charge!
Invoces sent out, and I wait and wait and wait.
This time last year I was owed over 6 grand!
Got it in the end, but after several calls and knocks on their door!

Can't you put a late payment clause on your invoice?

lucy7 · 10-03-2009, 16:16

Quote:

Originally Posted by Saaf_laandon_mo

Can't you put a late payment clause on your invoice?

I could, but I wont!

Its the nature of the game now really, I wont do anything to annoy them, as they could pull 50% of my income just like that!
There are always people ready to step into my shoes ,and want to, to do the job.

I do get paid in the end, its just a waiting game at times, as they are also waiting for payments, you know the usual thing.
My thing is, I still pay my staff on time, for work done.
Sometimes I can get a little near to the edge though.