I have been told to watch the way credit cards portray percentage rates

SSTEPHANIE

so am double checking them all :huh:

0.0407% daily ......... is that simply 14.89% a year

NickX

I make that 16% APR.

SSTEPHANIE

should know really that it couldn't be that simple:o

izools

That is the "Simple Interest Rate", remember that interest is charged on interest, so a Simple Interest Rate of 14.89% a year, equals to an APR of about 17.5% I think.

It'll be a bit inaccurate working it out from the daily rate, I would imagine the APR is either 16.9 or 17.9%

Here's how I worked it out.

1000 *.1489 = 148.9 = A
1000 - 148.9 = 851.1 = B

(A / *100 = 17.495

To work out APR from Simple Rate, you multiply 1000 by the annual simple interest rate, and subtract the answer from 1000.

You are then left with two figures, one big, one small. You then divide the small number by the big number and multiply the result by 100. You have then converted your simple rate into the annual percentage rate

NickX

I think thats overcomplicating things.

The Daily Rate is 0.0407%

The compunded APR is :

((1 + 0.0407 /100) ^ 365 - 1) * 100

= 16.012

i.e. 16.01%

izools

Yeah you're right because I tested my theory on my Vanquis rate - didn't work because it said the 34.08% Simple rate = and APR of 51%; that aint right.

Well done

SSTEPHANIE

NickX wrote: »

I think thats overcomplicating things.

The Daily Rate is 0.0407%

The compunded APR is :

((1 + 0.0407 /100) ^ 365 - 1) * 100

= 16.012

i.e. 16.01%

sorry my brain just cannot work that way

:rotfl::rotfl::rotfl::cool: