You have a credit card with a balance of $340.41. Your interest rate is 17.99% and you pay it off after 8 days.
How much interest would you be paying?
2006-10-05 04:31:31 · 6 answers · asked by Kevin 3 in Business & Finance ➔ Credit
Got the answer from Ethan, but Yahoo requires me to wait 4 hours before choosing Best Answer. Thanks for your help!
2006-10-05 04:42:36 · update #1
People, please stop leaving sarcastic comments. This site is called Yahoo! Answers... I came here to get an answer, there is no need to be immature about it.
2006-10-05 04:44:56 · update #2
Actually, you would pay .1799*340.41 = $61.23 for a whole year of interest. Credit cards charge you based on daily balances usually. So 8 days of interest would be (61.23/365)*8 = $1.34 for the 8 day loan at that interest rate.
If your card has a grace period and you charged the 340.41 as purchases this month, you wont pay any interest at all as long as you pay off your bill every month. If you carry a balance by making minimum payment or any payment less than the full balance on your statement, you will be charged daily interest as illustrated above.
2006-10-05 05:54:14 · answer #1 · answered by alferzz 2 · 1⤊ 0⤋
Ethan is incorrect-- he gave you the whole year's worth of interest. You'd need to divide the $60.00 by 365 to get your daily interest, and then times that by 8 days.
However its not going ot be perfect-- it would depend upon if your interest was compounded daily, once monthly, etc.
2006-10-05 13:12:28 · answer #2 · answered by Anonymous · 2⤊ 0⤋
If you pay the balance in full within the monthly bill you pay no interest.
2006-10-05 11:33:31 · answer #3 · answered by Anonymous · 0⤊ 1⤋
Well, you pay $61 in interest a year on a $340 credit card balance. Do the math.
2006-10-05 11:35:38 · answer #4 · answered by Olivier P 3 · 0⤊ 4⤋
$340.41 x 17.99 / 100 = $61.23
So $61.23+$340.41 = $401.64
If you pay the full $340.41 before the due date then you pay no interest at all.
2006-10-05 11:33:09 · answer #5 · answered by Anonymous · 1⤊ 1⤋
340.41*17.99%*8/360=1,3608835333333333333333333333333
2006-10-05 11:41:28 · answer #6 · answered by Peter 1 · 0⤊ 4⤋