Calculating interest on credit card

[NC84]

1 percent of 5k is obviously 50 so does that mean if I have a 5k balance that my interest charges would be $50 a month if the APR was 0.99%

[K-in-Boston]

No. The A in APR is annual. Monthly would be $4.13 on $5000 at 0.99% but APRs are usually calculated on an average daily rate on credit cards so it would vary depending on when payments are made. But not by a lot.

[SlideOrInsert]

for clarity:

interest $ = ( ( APR / 100 ) / 12 ) * balance

$4.125 = ( ( 0.99 / 100 ) / 12 ) * 5000

[NC84]

Thanks 😊