CRMC HELP please

Luciana

I can't figure out the late payment question on AAT assessment. Could any one share some thoughts? Thanks.

The question is as below

Small companies are eligible to charge interest to customers who settle their debts late. The interest rate is calcuated as 8% above base rate and is charged on the gross amount of the debt due. (VAT inclusive at 20%). what is the interest chargeable on a net debt of £3000 which is 60 days late when the base rate 1%?

AAT answer is £53.26

Can any one show my the calculation?

Many thanks.

Jo Clark

Hello Luciana

Please see this thread which shows how to complete the calculation

http://forums.aat.org.uk/showthread.php?33389-Credit-Management-Calculation-Help

Luciana

Thanks Jo. Just what I needed.