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28 November, 08:43

Credit card with30%interest rate for 30 day period

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  1. 28 November, 10:26
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    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.
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