Late Payments Interest calculation question
gabriellenlewis
Registered Posts: 129
A customer owes £3000, exc VAT and it is 45 days late. The current base rate is 1.5%. Calculate the interest charge.
So, I did 1.5 + 8 = 9.5%
(0.095 x 3000) = £285 annual interest
(285/365) = £0.78 interest per day
(0.78 x 45) = £35.14
But the answer is apparently £42.16, please tell me where i am going wrong?! Thanks.
So, I did 1.5 + 8 = 9.5%
(0.095 x 3000) = £285 annual interest
(285/365) = £0.78 interest per day
(0.78 x 45) = £35.14
But the answer is apparently £42.16, please tell me where i am going wrong?! Thanks.
0
Comments

You need to include VAT  Gross amount x 9.5%
Then multiply by 45/365.1 
AlisonSwanson said:
You need to include VAT  Gross amount x 9.5%
Then multiply by 45/365.</blockquote0
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