0.482% monthly interest = ?

cpu

Sorry for the basic question. Do I just times this by 12 to find the apr? 12 x 0.482% = 5.78%, or is that too easy? Maths was never my thing.

Milarky

Not quite. It is 5.9

Assuming it is quoted from an agreement (we are in the 'credit cards' board after all) at '5.9 APR' that is what you have to make it come up to.

0.482% = x 1.00482 per month

So over 12 months is:

1 x 1.00482 x 1.00482 x 1.00482 x 1.00482 x 1.00482 x 1.00482 x 1.00482 x 1.00482 x 1.00482 x 1.00482 x 1.00482 x 1.00482 = 1.059398....

which comes out (after rounding) as '5.9%'

See here for a post describing how annual rates appear when made up from monthly quoted rates

(After a while, you just end up remembering the monthly/annual 'conversion' rates rather like a times table)

cpu

Thank you. I'm shuffling balances at the moment and that was the interest rate for a BT that was showing up online on my existing Capital One card. Just trying to work out what's best but it's alway easier if the basic figures are all along the same lines.

:beer: