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Started by WengerTodd, December 04, 2019, 04:06:13 AM
QuoteYour Retail Installment Contract is a "simple interest" contract. This means that finance charges accrue daily, beginning on the date of your contract, and are based on your Annual Percentage Rate (APR), the number of days since the last payment, and the outstanding principal balance as of the last payment. If your payments are early or more than your scheduled amount, then you may owe less in finance charges. Your payments will be applied first to finance charges, then to any late charges, then to principal balance. The formula to calculate your daily finance charge is as follows:Daily Finance Charge = Principal Balance x APR / 365 (days a year)Any additional amount is applied to future payments, up to the next 3 payments, unless otherwise required by law. Any remaining amounts will be applied to the principal balance owed on your account. For example: If you have a $100 payment due February 1st, and you send in $500 on February 1st, your payment will satisfy your February 1st $100 payment, your March 1st $100 payment, your April 1st $100 payment, and your May 1 $100 payment. The remaining $100 is applied to your principal account balance, and your next payment will be due June 1st.