Enter the unit of time and select the period to use to specify when interest is calculated: Day (calculate interest each ...

Enter the unit of time and select the period to use to specify when interest is calculated: Day (calculate interest each day; interest for partial months is calculated at a rate of 1/30 of the monthly interest for each day), Month (calculate interest on the first day of each month; interest is calculated as 1/1 of the monthly interest rate), or Calendar day (calculate interest each day; interest for partial months is calculated at a rate of 1/Number of days in the month of the monthly interest for each day). For example, an invoice for 1,000.00 is created on January 1 in a leap year. The due date is February 15. For the interest code, the debit percentage is .5 percent (6 percent annual interest/12 months). Interest is calculated on February 16, which spans two intervals of 15 days. The calculations are as follows. If Day is selected, 1,000.00 * .005 * (30/30) = 5.00. If Month is selected, 1,000.00 * .005 * (1/1) = 5.00. If Calendar day is selected, 1,000.00 * .005 * (14/29 + 16/31) = 4.99.