# DPR vs APR

Discussion in 'Credit Talk' started by K.L. Auer, Apr 13, 2000.

1. I have received an offer but instead of quoting me an Annual percentage rate they are quoting me a Daily percentage rate. They stated that the daily percentage rate is calculated by dividing the APR by 365. Does this translate to be the same %. Or if the DPR is 15.99% is that like 22.82% APR. I am no mathematician and am wondering why this card is choosing to use new terms (to me at least) to quote their rates.

2. k.l. what company are you referring to.

3. To calculate the Annual Percentage Rate from a daily percentage rate, you MULTIPLY the DPR by 365. Bear in mind when you do this that the daily percentage rate (for a 9.9%APR as an example) will look something like: "0.02712%". If you are using a hand calculator remember that percentage (%) moves the decimal point two places to the LEFT. You would enter '0.0002712' as the DPR factor then multiply by 365 and you get '0.098988' which rounds to 9.9%.

It would be interesting to know who this creditor is as all offers of credit are now required to contain the "Schumer Box" which states the specific terms of the offer, including the interest rate as expressed as an Annual Percentage Rate, among other things like the grace period and any fees associated with the proposed account.

Happy calculating.