## How to use the interest scale calculator

The Interest Scale Calculator calculates the interest charges of current accounts or generally reconciliation accounts whose balance can consist of assets or commitments. Those include most salary accounts as well as overdrafts and other accounts. The interest rates can change in time. The interest rates are different for assets and commitments.

As input you can set the day calculation and the capitalization for assets and commitments independently, the same goes for differing debit and credit interest rates. Thus the interest calculation of current accounts can be controlled.

**The input table "Movements": **If you want to enter account movements of current accounts (deposits and disbursements), click on "Date" in the input table "Movements" and enter the date of the movement. Then click in the same line on the column "Value" and enter a negative value for disbursements (removals) and a positive value for deposits (inserts).

**The input table "Change interest rates": **Since the interest rates on the debit and on the credit side of current accounts can differ, it is necessary to enter both the debit and the credit interest rate in "Time elapsed". For that, click into the first field of the column "Date" of the table and enter the date from which on the interest rate applies. Afterwards, click into the column "Interest" in the same line and enter the pertinent interest rate.

**Note: **With the computation of interest with current accounts the tables movements and changes of interest rate (debit and credit) are arranged automatically according to the date. If no valid debit or credit interest rate is available, the interest rate 0 is used. If there are movements after the last interest rate, the last interest rate is automatically consulted.

**The option "Day calculation - capitalization": **Click on the register "Day calculation - capitalization". Determine, through clicking on the appropriate options, whether the year should have 360 days, or be as long as a calendar year, and whether the day calculation should be accomplished according to the calendar or with 30 days per month.

Adjust capitalization (When should the interest be added to the capital of the current account?): By clicking the appropriate options determine whether during the calculation of interest the capitalization is to take place monthly, quarterly, half-yearly, annually or at the end of the running time.

**The closing date: **Enter here, when the conclusion of the current account is to take place. If no date is entered, the date of the last movement is used as closing date.

**Compute: **Click on "Compute", in order to accomplish the interest calculation of the current account.

**The table "Interest Computation": **The result of the calculation of interest is the table "Interest Computation".