# Late Payments Interest calculation question

gabriellenlewis
Posts:

**129**AAT Student
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.

## Answers

209Registered, TutorThen multiply by 45/365.

129AAT Student