I had the same reaction as JoeU2004, by the way; 5% compounded monthly is
actually 80% per year, not 60% (because of compounding), which is pretty dang
high. However, onward: Prepare for a lecture on interest.

When a customer owes you $100 and has agreed to pay the piratical rate of 5%
per month, that means that after a month he owes you the original $100 plus
5% of that $100, or $5, which is $105 total. The next month, assuming he
hasn't paid anything, he owes $105 plus an additional 5%, or $5.25, for a
total of $110.25. The next month another 5% adds $5.51, then $5.79 and so
on. At the end of 12 months his bill is up to $179.59.

Now the way to calculate this without going through a complicated loop is to
view this in a slightly different way. Instead of multiplying the principal
by 0.05 and adding the result back in, think of it as multiplying the
principal by 1.05. At the end of the first month you multiply it by 1.05,
which turns the $100 debt into $105. The second month you multiply it by
1.05 and you have $110.25; times 1.05 again is $115.76, and so on.

To sum up, when you're charging interest at i% per period, then after n
periods the new value he owes you is the original principal times (1+i) n
times, or the principal * (1+i) ^ n. If you're charging 5% per month, then
after 12 months he owes you the principal * 1.05 ^ 12; if you're charging 8%
per year, then after 30 years he owes the principal * 1.08 ^ 30. And so on.

But there's a difference: You want to charge 5% per month but calculate the
interest after n days. No problem: You can assume an approximate 30 days in
a month and say that 5% per month is 5/30 or 1/6% per day. Or, if you want
to be more precise - no point in that, I think, but you can if you like -
there are actually more like 30.4375 days in a month, so 5% per month is
0.164271047% per day. Doesn't matter to me which you use; the point is that
again, after n periods (days in this case) the new debt is the original
principal times (1+i) ^ n - that is, if he owes you $6292 then after two days
he owes you $6292 * 1.016667 ^ 2, or $6312.99. That's how interest is
calculated.

You mentioned his having paid part of the debt. Well, say he owes $1000 at
5% per month, and after 15 days he pays $500. But during that 15 days
interest has been accumulating at 0.16667% per day, so that $500 no longer
represents half of the debt:

Mar 31: He owes you $1000

Apr 15: The debt is now $1000 * 1.16667 ^ 15, or $1 025.29. Then he paid
$500, so he now owes $525.29.

Apr 30 (15 days later): The $525.29 has grown to $538.58; he pays another
$500, and owes 38.58.

May 15 (15 days later): The $38.58 has grown to $39.56, which he can pay you
to clear the debt.

--- "Hardeep_kanwar" wrote:
Ok Just take the Simple Example

A1=6292
A2=2 Days
A3=5%

Now i want to Calculate the interest rate of 6292 of 2 Days @5% per Month.

Second question i will ask in my next Post for Better Clarification.

This part is for your Clarification.
Dr. is not Doctor it is DEBIT

Sorry ,it is only INTEREST not Extra Interest.

Acutally it is a Amount which is paid by the Customer And he have to paid
the Amount in column C(C1=6292) but he paid only Column F(F1=6166).