When you create an interest condition, you need to specify its calculation methods. The following settings are available:
Interest method
You specify an interest calculation method .
Linear interest calculation
If you do not select the field for exponential interest calculation, the system calculates the interest as follows:
Amount = calculation base amount x percentage rate / 100 x days / base days
Exponential interest calculation
If youselect the field for exponential interest calculation, the system calculates the interest as follows:
Amount = calculation base amount * ( q** (days / base days) - 1)
where
q = 1 + percentage rate / 100 (compounding factor).
When you create a transaction interest condition, you can specify an allowance for which no transaction interest is calculated.
When you create an
overdraft interest condition
, you can use the
Additional Debit Interest
indicator to calculate the interest that you defined in the condition in addition to the debit interest defined for the account.
When you create an
interest penalty condition
you can define the number of days for which the interest penalty is to be calculated in the
Calculation Method of Interest Penalty
field. The 90 and 900 day methods are implemented.