How do you calculate what the monthly interest charges would be for certain items only on a credit card?

Question

The same credit card is for both personal and business use. I need to find out what the business items interest charges are (monthly) if the annual rate is 18.9% (or 0.05178% daily).

The same credit card is for both personal and business use. I need to find out what the business items interest charges are (monthly) if the annual rate is 18.9% (or 0.05178% daily).

For the record (particularly "IH8TomBrady"), I am not doing my own books. This is a project of personal/business interest. I want to succeed with this, and I see no harm in asking for help... even when I should know the answer and I've lost all my books and information.

This is for someone who started a business last year. I've convinced them to switch to separate credit cards for this year, but last year is still a mess... yikes! They are working with accountants as well... like I said, this is more for my own info as I'd like to further my knowledge. Thx in advance for those willing to help!

Answer 1

I don't mean to sound like a jerk, but if you have to come to YA for this you may want to just invest in a n accountant and not worry about doing your own books.

Answer 2

Total up the items bought for business and multiply by the monthly interest percent. This gets a lot trickier if the charges go back aways, and are mixed between business and personal, since it's pretty hard to assign your payments to the business items or the personal - you'd have to keep a running total, and figure what percent of the total was which, and that math will get real ugly real fast. This is why it's a real bad idea to use the same card for business and personal items.

Answer 3

If you have a business, you should have a CPA to review your books. Also, you should never mix personal and business accounts. Get a company credit card.