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14.4%
14.4 %. A+
1.5 or 1.50
1.75%
That's an effective annual rate of 15.39%, thanks to the magic of compound interest (simple multiplication gives 14.4%, but this neglects the fact that if you don't pay it off each month you wind up paying interest on interest).
14.4 %. A+
14.4%
1.5 or 1.50
1.75%
1.75%. A+
That's an effective annual rate of 15.39%, thanks to the magic of compound interest (simple multiplication gives 14.4%, but this neglects the fact that if you don't pay it off each month you wind up paying interest on interest).
You wouldn't want a high interest rate, necessarily. However, if you had a choice between a credit card with an annual fee and one without, you would need to see how the interest rates compared. A person with a very low level of debt, such as one who paid out the credit card balance monthly, the high interest rate might not be a deciding factor compared to the annual fee. Remember, the annual fee will also have interest charged on it.
It is 100*[(1+18/100)^(1/12) - 1] % = 100*[(1.18)^(1/12) - 1] % = 100*[1.01389 - 1] % = 100*[0.01389] = 1.389 %
The two main benefits I could think of is that it has a low monthly interest rate. The other benefit is that there is no annual fee, you need good credit though.
Annual interest is interest that accumulates every year. This is a predetermined percentage that is added to a loan or credit card payment.
how is line of credit interest calculated
Monthly