Need Help With An Finance Question!?

Suppose, Harbour Master sold a Watch to Peter on August 29, year 2012 for $1,500 incl. HST.
Interest was set out on the bill of sale at 12 percent per year on overdue accounts, with a $25 charge for NSF cheques.
How do I calculate the “12 percent per year on overdue accounts?” Please Help
Thanks
(ON, CANADA RULES APPLY)

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