Interest question

LYNNE1969

I'm trying to do the credit card shuffle, using Martin's worksheet. Could anyone please explain how I calculate an interest rate that is only shown on my bill as a monthly rate? I assume the sheet is set up to work out on an annual rate, but I'm a dunce as to how to convert it.

TIA
Lynne

CLAPTON

if you use exel then if M is the monthly interest rate then

=power(1+M/100,12)-1 will give the APR

so if monthly is say 1.2%
the APR is 15.39%

or simply multiply by 13 which gives an approximate value so 1.2 x 13 = 15.6% (not exact but not too bad)

LYNNE1969

Thanks! That's very helpful!

Lynne

Clariman

Or use an interest rate conversion tool like this one.

Clariman