Common use of Calculating Interest Clause in Contracts

Calculating Interest. a) Consolidated payments i. Regular purchases: No interest is calculated on regular purchases billed the first time if the balance is paid in full by the due date shown on the account sta- tement. Otherwise, interest is calculated on the average daily balance from the date on which the transaction is posted to the account statement until receipt of full payment, if payment is not made within 21 days, at the annual interest rate indicated on the account statement. ii. Cash advances: Interest on cash advances is calculated on the average daily balance from the date the transaction is made until receipt of full payment, at the annual interest rate indicated on the account statement. b) Individual payments i. Regular purchases: No interest is calculated on regular purchases billed for the first time if the balance is paid in full by the due date shown on the account statement. Otherwise, interest is calculated on the average daily balance from the date on which the transaction is posted to the account statement until receipt of full payment, if payment is not made within 21 days, at the annual interest rate indicated on the account statement. However, if the balance shown on a subsequent statement is paid in full no later than the indicated due date, regular purchases not yet paid shall be exempt from interest for the period for which full payment is made. ii. Cash advances: Interest on cash advances is calculated on the average daily balance from the date the transaction is made until receipt of full payment, at the annual interest rate indicated on the account statement.