Post by hruggiero on Jul 15, 2015 14:10:55 GMT
www.bankofamerica.com/credit-cards/education/what-is-apr.go
Bank of America has a great explanation on how to calculate APR. Compare 2 credit cards and their APR. Imagine putting a $500 purchase on the card for 2 years. How much would you actually pay in interest? Why does APR matter so much?
APR/365=DPR (Daily Periodic Rate)
DPR*days in a billing period (days in the month usually)*Balance (amount still owed)= interest charged
If the math is a bit much, or you just want to see the results of APR you can also try an auto-calculator:
Interest.com has a variety of calculators for this purpose.
www.interest.com/debt/calculators/amortization-calculator/
Bank of America has a great explanation on how to calculate APR. Compare 2 credit cards and their APR. Imagine putting a $500 purchase on the card for 2 years. How much would you actually pay in interest? Why does APR matter so much?
APR/365=DPR (Daily Periodic Rate)
DPR*days in a billing period (days in the month usually)*Balance (amount still owed)= interest charged
If the math is a bit much, or you just want to see the results of APR you can also try an auto-calculator:
Interest.com has a variety of calculators for this purpose.
www.interest.com/debt/calculators/amortization-calculator/