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Question by  wxwnnr (13)

# How do you determine the statutory interest rate?

I need to know how to calculate what to charge someone in interest if they are late on a payment.

 +1 vote! +6 you voted Answer by  kimmski (16) Statutory interest rates are determined by the legislature (and codified in the statutes). Depending on the circumstances surrounding the payment, the applicable interest rate must be researched in the civil statutory code for that particular jurisdiction.

 +1 vote! +5 you voted Answer by  stevenhuynh (86) The interest is equal to: (i/n)^t. n is compounding period (e.g. n=2 if compounded semi-annually). t is the number of periods (e.g. t=2*2=4 for a two year investment compounded semi-annually).

 +1 vote! +4 you voted Answer by  star12 (4) I think that you should add at least 5% or 10% depending on how long they payments been overdue. If the amount that is overdue is over 50 dollars then the interest should be bigger and keep adding to it probably 5 or 6 dollars by the end of the week if they still didn't give you the money.