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Definition: Adjusted Rate
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The adjusted rate is calculated by determining the weight of each rate used in the bill and then multiplying the weight by the rate and summing up the tiers.
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Billable Value = $1,000,000 |
100,000/1,000,000 = .10 x .0025 = .00025 |
The first $100,000 is billed at a rate of .25% |
900,000/1,000,000 = .90 x .001875 = .001688 |
The rest is billed at a rate of .1875% |
.00025 + .001688 = .001938 = .19% is the Adjusted Rate |
The adjusted rate is included after the billing allocation section if your Statement Display Options are set to Summary.