How Is Daily Periodic Interest Rate Calculated?

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How Is Daily Periodic Interest Rate Calculated? – This is a place for the community to provide tips and advice on How Is Daily Periodic Interest Rate Calculated?. This topic was created by Identity Al - Said and the tips are provided by the community. The tips you add here can be your own or referred from another site. The best tips are then ranked at the top when up-voted by members of the community.

Tip 1 - What is a "daily periodic rate?"

Published: 9 years, 3 month(s) ago | Submitted by Dana Spinney | permalink

A daily periodic interest rate is calculated by dividing the annual percentage rate (APR) by either 360 or 365, depending on the card issuer. The resulting daily periodic interest rate is then used to calculate interest by multiplying the rate by the amount owed at the end of each day. This amount is then added to the previous day’s balance, which means that interest is compounding on a daily basis. However, the interest rate for a credit card is usually state

For further reading: http://www.consumerfinance.gov/askcfpb/46/what-is-a-daily-periodic-rate.html ^[1]

Tip 2 - How Is Daily Periodic Interest Rate Calculated?

Published: 9 years, 3 month(s) ago | Submitted by farrah floyd | permalink

Any business owner who extends store credit to customers, receives trade credit from vendors or just uses a credit card for business expenses should have a firm grasp of interest rates, how they're ...

For further reading: http://smallbusiness.chron.com/daily-periodic-interest-rate-calculated-61975.html ^[2]

Tip 3 - Periodic Interest Rate Calculator

Published: 9 years, 3 month(s) ago | Submitted by Lyzeczka | permalink

Calculate the effective periodic interest rate from the nominal annual interest rate and the number of compounding periods per year. Example, calculate daily periodic rate for a credit card account.

For further reading: http://www.calculatorsoup.com/calculators/financial/periodic-interest-rate-calculator.php ^[3]

Tip 4 - daily periodic rate

Published: 9 years, 3 month(s) ago | Submitted by Christopher Cruden | permalink

Some credit card issuers use a daily periodic rate to calculate your monthly interest charge. It's easy to figure out your daily periodic rate if you know the APR on your credit card.

For further reading: http://credit.about.com/od/df/g/dailyrate.htm ^[4]

Tip 5 - Calculate Daily Interest On Your Loan

Published: 9 years, 3 month(s) ago | Submitted by Mark de Jong | permalink

Estimate how much you save by making payments soonerwith this calculator.
Tags: manage your money, daily interest, calculator, interest, compounding, payments, saving

For further reading: http://www.aie.org/manage-your-money/reduce-debt/calculate-daily-interest-on-your-loan.cfm ^[5]