If you were to have a 5000.00 balance, how do you figure your monthly finance charges if your apr is 16.99?
Divide 16.99% by the number of days in the year (365) which gives you the Daily Percentage Rate (I will call this DPR). Then take DPR and multiply by number of days in that monthly cycle (say 30 days)... this gives you the monthly percentage rate.. Then multiply that with your balance and that will give you your monthly finance charges. Here it is: 16.99/365=0.04655 * 30 = 1.39% * 5000 = $69.50 Hence $69.50 should be pretty close to what shows up on your bill (give or take a few pennies depending on rounding)
