Quick CC interest rate calculation

D

Darando

Registered User
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154
When I see the interest rate quoted on my statement as monthly, e.g. Monthly Rate 1.18% - what does this equal in APR (i.e the main rate that all the banks advertise)?

Is it a simple 1.18% x 12 = 14.16% APR - I think its probably not as thats not the rate on the AIB website..(think it should be 15.15%!!)

Just interested in how its calculated.
 
Take your monthly interest rate divide by 100 add 1 (in your case 1.18/100=0.0118 add 1 =1.0118) now multiply this number by itself 12 times .Next deduct 1 and multiply the answer by 100 to get a quite accurate answer (again in your case 15.1).your apr is 15.1%
 
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