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When the step is complete, the Interest Calculation step becomes active. This step prompts a user to calculate the interest that should be refunded to the account holder if the dispute is paid. QFD can be configured to automatically calculate and refund interest associated with disputed transactions. Users can also use the Interest Calculator to manually calculate interest and generate a refund. |
A service can be configured to calculate interest automatically. When a service is not configured, a manual assignment is generated so that interest can be calculated using the provided calculator. The interest is refunded in the Interest Maintenance step.
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The freeform entry ais included in the Interest Calculation assignment and allows the user to input the appropriate interest amount instead of utilizing the calculator view. The application will update the interest amoutn based on the amount entered by the user.
Calculation Formulas
The compound interest formula below is used to calculate the interest and is then applied based on the start and end dates selected. The interest accrued is then applied to the transaction amount for any subsequent rows so that the total amount calculated is cumulative.
i = (((((((r/100)/dc)+1)^d^c)-1)*t)/c)*t d
i -- – Interest amount
r -- – Interest rate as a %
t -- – Transaction Amount
d c – Day Count Convention, either 360 or 365
d – days in interest cycle
The simple interest formula below is used to calculate the interest and is then applied based on the start and end dates selected. The interest accrued is then applied to the transaction amount for any subsequent rows so that the total amount calculated is cumulative.
i = t(1+ (r/100)/c)*d)
i -- – Interest Amount
r -- – Interest rate as a %
t -- – Transaction Amount
d c – Day Count Convention, either 360 or 365
d – days in interest cycle
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Interest calculation details, such as dates, rates, and amount, can be viewed from the Overview tab. |
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