Being a bit thick with interest rates...

Caroline73_2

What is the APR if the monthly rates are 1.527% and 1.2916%?

And how do I work it out for future reference?

Thanks!

Tixy

I use this calculator
http://www.stoozing.com/mon2yr.htm

Gorgeous_George

APR includes ALL the costs associated with the loan so it isn't a straight forward calculation. If there are no other costs I'd just multiply the monthly rate by 12.

Google 'APR' for more information.

GG

ETA: Tixy's link is useful but this is NOT the APR.

Caroline73_2

Thank you! Now I know where not to transfer my balances!

firsttimestudent

My understanding to convert the monthly rate to APR, you should:

1. Add the monthly rate to 1.00 - so (1+0.01527)=1.01527
2. Raise 1.01527 to the power of 12 = 1.19944
3. Subtract 1 from the answer in the previous step = 0.199 or 19.9% APR

Similarly, for the monthly rate of 1.2916%

1. 1 + 0.12916 = 1.012916
2. 1.012916 ^ 12 = 1.16649
3. 1.16649 - 1 = 0.16649 or 16.6% APR

Hope this helps!