Question

You purchased merchandise from a suppler and failed to pay the invoice amount $310 by the last day of the credit period, August 12. Calculate the total amount you must pay on October 15 if the suppler charges 18% interest on past-due accounts.

Answer 1

After 64 days, you will owe
.. 310*(1 +0.18*64/365) = 319.78

You must pay $319.78 on October 15.