30.34% APR

2 replies

AprQ · 14/09/2023 23:37

Quick question as I don’t even understand how to work out APR.

If I have an outstanding balance of £300 on a credit card and the charged interest rate is at 30.34%, how much interest is added on each month? Pls help!

OP posts:

VerticalSausages · 15/09/2023 00:05

It’s 30% of 300 in a year which is £90

So each month is £90 divided by 12 = £7.5 a month.

Slightly more complicated in reality due to compound interest but that’s a good enough ballpark.

Original poster

AprQ · 15/09/2023 00:13

VerticalSausages · 15/09/2023 00:05

It’s 30% of 300 in a year which is £90

So each month is £90 divided by 12 = £7.5 a month.

Slightly more complicated in reality due to compound interest but that’s a good enough ballpark.

Thank you so much you lifesaver! So it’s just the percentage of your credit balance. Then divided by 12 so see how much interest will be paid each month. That’s so bloody helpful, you’re the best!

Why couldn’t Google just explain it this clearly😂

OP posts:

Flip