07-30-2013 08:52 AM - edited 07-30-2013 08:58 AM
I have a balance of nearly $1,748.96 and a 13.99% apr after the 10th of August. He said if I keep my balance until the 14th (statement close), my interest would be $2.68 and I asked if I kept it hypothetically (said I am going to pay my minimum balance) tif i kept the balance until sept 14th (possibly my next statement close) how much would the interest be? He said $23 and some change...
I did 1,748.96x.1399 and I get $244.68...
Please help me figure this out...
edit: He also said my premium rate is 3.25%+10.74% I don't understand this either.
07-30-2013 08:59 AM
The APR is the Annual Percentage Rate. So you take your 13.99% and divide that by 12 to get your monthly percentage rate of 1.17. You then multiply that by your balance of $1748.96 and you get $20.39. This is how I understand interest to be calculated. I may be wrong though...
07-30-2013 09:12 AM
07-30-2013 09:40 AM - edited 07-30-2013 09:43 AM
Average daily balance x interest rate / 365.25 x number of days = total interest.
In your example
$1,748.96 * .1399 / 365.25 * 4 = $2.67958 rounded up to $2.68
Or until Sep 14th
$1,748.96 * .1399 / 365.25 * 35 = $23.44635 rounded up to $23.45
07-30-2013 10:27 AM
I think scsplayer has it figured out. For the second part he gave me $23.6? I believe, but it is likely because my balance changes on the 14th. Thank you everyone.
You mean prime rate was that high for everyone or just people with poorish credit?
07-30-2013 10:35 AM