ecurbj on 10 September 2008
| GooseGaws said: Say you had a credit card with a 10% APR (annual percentage rate). You make a purchase for $1000. Most cards will have a minimum payment of something like 3% of you total balance or $10, whichever is higher. When they calculate interest on that $1000 the next month, the value is approximately 1/12 of the APR (in this case, 0.83333333...%). So your total balance will be 1083.33. If you only make the minimum payment of 3% ($32.50), your balance will now be $1050.83. So when the next month rolls around and interest is calculated again, your new balance will be $1138.40. Make sense? |
Now, I'm confused...I need someone to slow it down a little more. Those were some huge numbers you presented! And I'm like wow right now...
