Discussion in 'Credit Talk' started by jacob, Sep 10, 2000.

  1. jacob

    jacob Guest

    is there an equation for calculating the interest a credit card accumulates in a month (as it is calculated daily it is a compounded amt)
  2. Rich Guy

    Rich Guy Guest

    If I understand you correctly, we are starting with amount x and compounding a daily rate r for a whole month of 30 days.

    The equation would simply be:

    interest= x(1+r) -x

    which approximates but exceeds 30r.
  3. Rich Guy

    Rich Guy Guest

    That got mixed up between my entry and the posted message. What I wrote was:

    Interest equals x times (1+r) to the thirtieth power, minus x.

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