NAO 203-31 — Exhibit 2

Effective 04/24/90
NAO 203-31 - Exhibit 2
Terms: $10,000, 2/10 net 30 days
Facts: A discount of $200 was taken on the 12th day, 2 days over the discount period. Improper discount taken was paid to the contractor on the 30th day after the discount period expired.
Days Interest Penalty: 30
Interest Computation: $200 x 7% x 30/360 = $l.l7 Interest Penalty

NOTE: The 7% interest rate used above is for illustrative purposes only. The current "Renegotiation Board Interest Rate" should be used in actual cases.