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Compute a $25.00 late fee and Intrest after 10 days

 
 
Reply Wed 20 Apr, 2016 08:20 am
We need to charge a late fee of $25.00 if an HOA payment (usually $35.00) is not received by the 10th. of each month. In addition, we are allow to charge 18% per year on the unpaid amount or any amount that is allowed to go unpaid.
Does someone know how we can in Excel perform this without having to manually entered it.
Thank You
Joe
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engineer
 
  1  
Reply Wed 20 Apr, 2016 08:21 am
@Joseph Segal,
How often do you want to compound the interest?
chai2
 
  1  
Reply Wed 20 Apr, 2016 09:07 am
=(((25*0.18)/365)*5)
The last number, 5 is the number of days over 10, you want to charge interest for. The 365 is assuming you want this daily.
I'm not going to compound it, as that would be utterly ridiculous. We are talking about far less than a penny.

The solution for the above, if we're talking about 5 days, is .06 cents.
18% interest on $25 is $4.50 for the entire year.

Are you really sure you want to go through all this trouble for pennies?
I can't imagine a small business actually going ahead and charging this. If you were a large business, all these calculations would be done for you in your company software.

This is probably not the most accurate formula in the world, but close enough for everyday application.

Is this for a homework assignment where you need much more exacting compounding and time retrictions?

Because honestly, if this is a real world problem, it's just not worth it.
Joseph Segal
 
  1  
Reply Sun 24 Apr, 2016 09:46 am
@chai2,
Hello,
As a director on the Board of Directors, our governing documents states that any HOA payment ($35.00) that is not received by the tenth of the month, a late fee of $25.00 will be added to the account. Also we are allow to charge 18% per year interest on the unpaid balance, starting after the tenth. Hence is why we are needing to be able to Exccel (auto) charge a $25.00 late fee if not received by the 10th of the month, along with an 18% (1.5%) per month/per day interest on the unpaid amount.
Hope this clarifies . Please let me know if the formula that was publish will work in this situation.
Thanks!
0 Replies
 
Joseph Segal
 
  1  
Reply Sun 24 Apr, 2016 09:48 am
@engineer,
Hello,
As a director on the Board of Directors, our governing documents states that any HOA payment ($35.00) that is not received by the tenth of the month, a late fee of $25.00 will be added to the account. Also we are allow to charge 18% per year interest on the unpaid balance, starting after the tenth. Hence is why we are needing to be able to Excel (auto) charge a $25.00 late fee if not received by the 10th of the month, along with an 18% (1.5%) per month/per day interest on the unpaid amount.
Hope this clarifies . Please let me know if the formula that was publish will work in this situation.
Thanks!
0 Replies
 
 

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