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Credit card with30%interest rate for 30 day period

asked
User Hai Hack
by
7.6k points

1 Answer

4 votes
Wow! That rate is awful!

30% per year is represented by the decimal fraction 0.30.

Roughly speaking, the interest rate per 30-day month is 30%/12, or 0.30/12, or 0.025.

Thus, the interest payable on this credit card is roughly 0.025 times the amount due.

If you owed $1000, you'd have to pay (0.025)($1000) in interest for that 30 day period. That'd be $25.
answered
User LoneRanger
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9.0k points

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