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How do I work out APR if my monthly rate is 1.667

by yveywi, 2 months ago•Open Question

Personal Finance•Money•Credit Cards

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Answers (2)

You need to compound the rate, calculated as 1.01667 to the power of 12, giving you 1.2194, meaning 21.94% APR.

by thetruth, 2 months ago

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Further to thetruth's excellent answer, an easier way than compounding to the power of 12 for a very close estimation is to multiply by 13. Then a monthly rate of 1.667% x 13 = 21.67%, which i'm sure both you and thetruth will agree is very close to the actual answer.

by Bonz1957, 2 months ago

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Not bad for a quick reference, but it goes awry at much over 2% per month.

by thetruth, 2 months ago

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Point taken, but not sure yveywi would have access to compound formulas. Just surprised that where she was looking did not have the APR stated.

by Bonz1957, 2 months ago

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I'm grateful to both of you as to how to do this, my credit card statements never give my APR, just the monthly rate, and it's been bugging me for ages, as I wasn't sure how to work it out for comparison purposes! Thanks!

by fruitcake, 2 months ago

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