interest rates

MonstersMummy

trying to work out a debt free plan, figuring out which is the highest rate to pay off first.
Does anyone know how to work out interest rates? I have one CC that states purchases are 1.24% which is obviously not the APR but the only rate on the statement. How can I convert that to an apr?
Thanks.

lil_me

I think 1.24% monthly rate is an APR of 15.9% thats what Nationwides was anyway. Sure someone will come along and correct me if I am wrong.

CLAPTON

you need to read the statement carefully but that is probably a monthly rate of interest.

the easiest but approximate way of converting to APR is to multiply by 13 although the correct formula is as follows

if m is the monthly rate expressed as a decimal i.e. 1.24% is written as 0.0124

the APR = ((1+m) to power 12 ) - 1)

so e.g. 1.24%

APPROX VALUE 12 x 1.24% = 16.12%

real value is 15.9%

fairly close in my view

MonstersMummy

Thanks guys!!
Thats not too bad I guess, the lowest of my interest rates anyhow!!!