How is interest calculated on fees?
Interest is calculated by multiplying the interest rate by the gross amount of the fee. The interest will start to accumulate after the interest start date and will not factor any payments into it.
Amount x interest rate x interest frequency = total outstanding
The interest frequency period is either daily, monthly or yearly. The interest will be calculated by taking the difference between the interest start date and the current date, divided by the interest frequency period. Once this is determined the interest frequency is multiplied by both the original amount and the desired interest rate.