Question

If payment is made after average due date, the party entitled to interest i

Answer 1

Answer:

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Explanation:

Average due date is defined as the mean date on which one payment may be made against the several payments due on different dates without having a loss of interest to either party.

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Answer 2

If case the payment is made after the average due date, the party entitled to interest is the "Creditor."

Explanation:

• The average due date is the weighted average date of various due dates for the transactions between the parties.
• The average due date is generally used where items are of the same kind of nature or between the same parties. These are represented by one date to make the calculation of interest/settlement more convenient,
• So that the parties will not have to calculate interest for each different due date, and settlement will be done at a single date.
• In case the party is not able to make the payment after the average due date, the "creditor" will be entitled to interest for his loss because of the other party.