Arp

shandypants

Now dont all laugh at once, but I wanted to put all my finances into the snowball thingy on here. Bascially my question is where do i find the apr's on my credit card? The statement says card purchases 1.29%, BT 1.4%, Cheq/money 1.5% cash 2.0% and default sums 1.29% but how do I actually calculate the apr? Im really confused? Sorry if this is a silly question! x

tummy6

The statement shows interest rate chraged monthly that are generally rounded; so the true interest rate month will be most likely 1.2949%.

Take that, and in excel use the formula

((1 + monthly interest rate)^12 ) - 1) x 100

Which mean you are taking the monthly interest rate and compounding it over 12 months then translating to an interest rate (the times 100 bit)

So for your example, the card rate of 1.29 is more likely 1.2949

(1+.12949)^12 = 1.166947

Subtract 1 = 0.166947 times 100 gives you 16.7% APR (actually is 16.6947 but OFT guidelines allows you to round)

CLAPTON

multiplying the monthly figure by 13 gives a decent approximation i.e.
1,29% x 13 is 16.77% APR is is good enough for your purposes.

shandypants

Great thanks to you both, I have to get my head around these figures!!! Suzie x