The Bureau of the Fiscal Service, a division of the U.S. Department of the Treasury, provides a monthly compounding interest calculator. This online calculator allows people to automatically determine the amount of monthly compounding interest owed on payments made after the payment due date.Continue Reading
To use this calculator, individuals must enter the numbers of days late, the number of months late, the amount of the invoice in which payment was made late and the "Prompt Payment" interest rate, which is pre-populated in the box. If a payment is 30 days late or fewer, borrowers can use the simple daily interest calculator, also available on this site.
Before a business can charge customers a late fee, they must first spell out the terms of the finance charge in writing. The first invoice sent must include a due date. This can be as simple as “net 30 days” or a specific due date at the bottom of the invoice. The percentage amount is clearly stated, and the customer must also be informed that past-due bills incur a late fee.
Most accounting software calculates finance charges, but knowing the process is helpful for both business owners and customers. The finance percentage should be calculated based on a full month. First, the daily percentage rate is determined. If the finance charge is 2 percent per month, that amount is multiplied by 0.03, which results in 1/30th of 2. This gives a daily rate of 0.06 percent. The amount due is multiplied by the daily rate. For example, if $200 is owed, then 200 is multiplied by 0.06 to get a daily finance charge of $1.20. If the payment is 20 days late, the charge is $1.20 for 20 days, for a total of $200 plus $24 in finance charges.Learn more about Financial Calculations
You can calculate your mortgage interest deduction using the calculator available from Bankrate, or by filling out an IRS Schedule A using the information on your mortgage interest statement, according to the IRS. The lender who holds the mortgage sends the homeowner a mortgage interest statement, or Form 1098, at the beginning of each year, indicating the amount of mortgage interest paid in the previous year. IRS Publication 936 contains the instructions and rules for calculating this deduction.Full Answer >
Interest is paid on U.S. Treasury HH savings bonds at the rate of 1.5 percent of the value of the bond every six months, reports TreasuryDirect, a service of the U.S. Department of the Treasury. Because HH bonds are a discontinued series, the rate is unlikely to change.Full Answer >
The Treasury Offset Program is a debt collection program administered by the Debt Management Services department of the Bureau of the Fiscal Service. Under this program, delinquent debts that are owed to states and federal agencies can be collected under various laws and statutes.Full Answer >
Automatic Clearing House regulations are rules, detailed in Part 210 of Title 31 of the electronic code of federal regulations, or eCFR, that define the rights and responsibilities of all stakeholders involved in the ACH system, explains the Bureau of the Fiscal Service of the U.S. Department of Treasury. Stakeholders include the public, government agencies, financial institutions and Federal Reserve banks. These regulations cover entry data, debit entries and credit entries that participants send or receive through the ACH system.Full Answer >