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Math Help - Calculating Intrest

  1. #1
    Newbie
    Joined
    Feb 2008
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    Calculating Intrest

    I'm trying to come up with a formula to calculate intest for me here at work.
    Here'e my example i'm working on now.
    I have a customer that owes $118.00.
    Each month late there is a $15.00 late fee
    and then 2% intrest added on top of that.
    This customer is 11 months late.

    What i am having trouble with is getting a formula to addthe 2% intrest each month after the $15.00 charge is added each month.
    My fomula adds the inital charge, then the late fees, then the intrest based off that.

    Right now my formula reads
    118[initial charge]+15*11[$15 charge for 11 months]((1+.02)^11)-1)
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  2. #2
    Senior Member
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    Feb 2008
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    Berkeley, Illinois
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    364
    Quote Originally Posted by deezeejoey View Post
    I'm trying to come up with a formula to calculate intest for me here at work.
    Here'e my example i'm working on now.
    I have a customer that owes $118.00.
    Each month late there is a $15.00 late fee
    and then 2% intrest added on top of that.
    This customer is 11 months late.

    What i am having trouble with is getting a formula to addthe 2% intrest each month after the $15.00 charge is added each month.
    My fomula adds the inital charge, then the late fees, then the intrest based off that.

    Right now my formula reads
    118[initial charge]+15*11[$15 charge for 11 months]((1+.02)^11)-1)

    Not sure I'd subtract the 1 at the end. You want the accumulated value of the [initial balance plus late fees]*1.02^late months

    That's assuming that when a late charge is tacked on at the end of the month, the 2% is tacked on immediately after before the next month starts and the cycle restarts again.
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  3. #3
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    Joined
    Feb 2008
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    he's something my friend came up with...

    Sorry, but all I have is a program oriented answer.

    ;variables
    n=11
    i=.02
    p=115
    f=15

    ;loop equation
    for n
    p=(p+f)*(1+i)

    ;outputs
    month 1 118
    month 2 135.66
    month 3 153.67
    month 4 172.05
    month 5 190.79
    month 6 209.90
    month 7 229.40
    month 8 249.29
    month 9 269.58
    month 10 290.27
    month 11 311.37
    Kind of helps explain, but doesn't help me with all the other 100 customers.


    EDIT

    Quote Originally Posted by mathceleb View Post

    That's assuming that when a late charge is tacked on at the end of the month, the 2% is tacked on immediately after before the next month starts and the cycle restarts again.
    That exactly what i need. but thats not what the formula seems to do....
    your formula comes out to $351.87

    It should come out to $332.90
    Last edited by deezeejoey; June 17th 2008 at 11:48 AM.
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