Financial Question

[naughtoj]

Ok, this may be dumb, but..........


Can you calculate an APR (annual percentage rate) if you know a total balance and the finance charge amount on a credit card??


For example, if I tell you I have an AmEx card with $320.52 balance and my finance charge on that amount was $3.88, can you give me what my APR is???

I am wondering because I am seeing that my APR is 15.24% or something like that, but that can't be right can it? (BTW, it really CAN'T be right) Or is it impossible to calculate an APR from a finance charge and total balance????

Inquiring minds want to know how this works.....thanks!!!

 

[Fit_mommy]

I don't know if I'm right but I got an interest rate of 14.52% by multiplying $320.52 by .1452 and then dividing the answer by 12.

 

[Ritko1]

The standard calculation would be the principle x the rate x the time / 365 (days of the year)

In this case it looks like they took the principle (320.52) x the rate (.1524) x the time (29 days) then dividing by 365

for example 320.52 x .1524 x 29 / 365 = 3.88101...........


HTH,

Laura

 

[naughtoj]

OMG, I would have never figured that out on my own!!! I was skipping the 365 days part and the 29 days part, LOL. Wow Laura........you are awesome! Wendy....close! Thanks for taking a stab at it.


So...........my interest rate really is 15.24%? Seems like an interest rate that high would produce a finance charge much higher, no? Boy, if it really is 15% I am for sure gonna be on the phone and griping on Monday!! Thanks you guys.

 

[lgw522]

I just saw a very interesting & enlightening piece on CNN. You can go out to money.com/cnn. The show talked becoming debt free, making a budget, etc. The show comes on every Sunday, you would have to check your schedule to see what time it comes on in your area.