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[BigJonsson]

Ok so cause of me forgetting a stamp on a bill payment it's now late...

So help me calculate this interest as I'm not sure if I did it right


0.05053% daily interest on a 171.63 dollar bill would be like a few cents a day right?

I did 171..63 * 0.05053% and got 0.086 or something like that

 

[AntoneM]

I'm not much for calculating the interest, but on a bill of that size, the late penalty will likely be higher than the interest.

 

[BigJonsson]

And where would I find out what the late fee is?

 

[sc0la]

just call them dude

 

[Inumaru]

Ok so cause of me forgetting a stamp on a bill payment it's now late...

So help me calculate this interest as I'm not sure if I did it right


0.05053% daily interest on a 171.63 dollar bill would be like a few cents a day right?

I did 171..63 * 0.05053% and got 0.086 or something like that

Yup, that's right, you multiply 171.63 * .0005053

Not much per day, but still 18.25% yearly. The late fee is probably gonna be $25-35. Call them and they will give you a one time yearly waiver, or at least most companies do if your credit isn't crappy with them.

 

[maharg]

Er, well if it's compounded daily the correct way would be amount * (1 + rate per annum/number of periods in year)^number of periods before payment.

So in this case it would be 171.63 * 1.0005053^ndays.

It won't be much different, but this is the correct way to calculate compound interest. If you let it sit for a year, the ACTUAL interest rate you would be paying (despite the 18.5% or whatever per annum they put on the bill) is (1.0005053^365 - 1) * 100% = 20.25%.

Just so you know.

 

[Inumaru]

Er, well if it's compounded daily the correct way would be amount * (1 + rate per annum/number of periods in year)^number of periods before payment.

So in this case it would be 171.63 * 1.0005053^ndays.

It won't be much different, but this is the correct way to calculate compound interest. If you let it sit for a year, the ACTUAL interest rate you would be paying (despite the 18.5% or whatever per annum they put on the bill) is (1.0005053^365 - 1) * 100% = 20.25%.

Just so you know.

Of course, I was assuming that the interest was removed daily! Or, uh, that the interest calculations are only done yearly! :lol

Alright, I'm sticking to words. Numbers can bite me.

 

[BigJonsson]

Yup, that's right, you multiply 171.63 * .0005053

Not much per day, but still 18.25% yearly. The late fee is probably gonna be $25-35. Call them and they will give you a one time yearly waiver, or at least most companies do if your credit isn't crappy with them.

There is no mention of a late fee anywhere on the statement/card rules

 

[Tekky]

Credit card interest is usually compounded monthly (per statement period).

And there's almost always a late fee. Will be surprised if there's not.

 

[maharg]

He didn't specify if it's a credit card or a normal bill (ie. utilities). Normal bills that have interest-based late fees typically compound daily.

None of my credit cards, mind you, have a flat late fee. But I only use VISA, where carrying a balance is an acceptable and normal thing to do. MasterCard and AmEx likely shaft you much more harshly if you're late on a payment.