costing per month in interest? thanks
2007-05-09 11:45:45 · 5 answers · asked by JB 1 in Business & Finance ➔ Credit
2,000 * .2124/12 = $35.40
2007-05-09 11:49:22 · answer #1 · answered by Kathryn 6 · 0⤊ 2⤋
mark is over complicating the issue. Credit card interest is NOT compounded daily. It is calculated based on your average daily balance, but that balance is multiplied by the periodic rate in a single calculation. Kathryn is not exactly right. The EXACT number of days in the billing cycle are used. She used 1/12 of an year. No month is exactly 30.416666 days. Assuming $2000 is your average daily balance and a 30 day month the answer is $34.92. $2000 * 21.24% * 30/365.
2007-05-09 12:56:48 · answer #2 · answered by STEVEN F 7 · 0⤊ 1⤋
Kathryn is close, but you actually need to calculate a daily rate, and calculate interest daily, and then compound the interest.
I don't have an amortization calculator handy, but you would do the following
Divide .2124 by 365 to get a daily rate of 0.000582192
multiply the daily rate times the balance. The 1st days interest would be $1.16
You would then multiply the rate times the new balance of $2001.16, and so on for each day in the month.
If you go through the full month of interest calculations, you will find it will be a few dollars more per month than Kathryn calculated.
2007-05-09 11:57:29 · answer #3 · answered by mark 7 · 0⤊ 1⤋
Do you carry a stability, or are you able to pay it off earlier it is going up? in case you may get to a 0 stability then it does no longer rely what your intrest value would be. As for if final it is going to diminish your score that relies upon on some factors. The longer you have a credit account open the better it seems on your score. So if it somewhat is one in each and every of your older debts it is going to diminish your common credit age, and in turn decrease your score. the different element which debts for 30% of your score is your credit utilization. ideally you desire to be utilising under 30% of your finished credit limits, for the time of all enjoying cards. If after final this account you're nonetheless under 30% it won't result your score that plenty. whether, if it pushes you over that 30% mark it is going to harm your score. ideally you need to pay off this account as right this moment as a threat, and then only shop utilising it for every day purchases. Then on the top of the month pay it off to steer away from the hot interest.
2016-10-30 23:43:26 · answer #4 · answered by ? 4 · 0⤊ 0⤋
2424.80 would be the balance!
2007-05-09 11:53:58 · answer #5 · answered by t_sublette 1 · 0⤊ 1⤋