late fine calculation

[soumyajit]

i have a policy which monthly installment is rs 15000,if i am unable to deposit it in every month, i have to give 2.5% of interest as a late fine every month.now i just wanted to know if i am unable to deposit my monthly installment near about 6 month, then how do i calculate my 6 month late fine all together with a single excel formula.


is anybody here who can help me please.

 

[Sajan]

Hello soumyajit,


It was not clear from your post whether a delay in the payment of the fine would cause the fine to be added to the monthly installment.


In other words, will the fine for month 1 (that is not paid) get added to the monthly installment, making month 2's dues to be 15,000 + (0.025*15,000) = 15,375?

Then if you have to pay a fine for month2, will the calculation be based on 15,000 or 15,375?

[pre]

Month	Installment	Fine %	Fine Amt
Month 1	15,000	        2.50%	375
Month 2	15,375	        2.50%	384.38
Month 3	15,759	        2.50%	393.99
Month 4	16,153	        2.50%	403.84
Month 5	16,557	        2.50%	413.94
Month 6	16,971	        2.50%	424.28

[/pre]
In the above example, the installment amount increases each month to include the unpaid fine from the previous month.


Could you confirm if this is what you want?


-Sajan.