What does 29.90% annual interest rate mean?

Answer this question

  • What does 29.90% annual interest rate mean?


Answer #1 | 05/01 2014 19:29
Ok, if you pay more than the required amount and pay ALL OF IT OFF WITH IN THE FIRST YEAR, YOU GET IT INTEREST FREE, NO INTERST PAID AT ALL. however, ... if you do not pay at least the minimum payment and pay it on time even during the first year, they automatically start charging the interest rate PER MONTH on what is left that you owe. If you make all payments on time during the first year, but don't pay it all off, you will still be charged the interest rate each and every month on the amount you still owe until it is all paid off. Hope that explains it.
Positive: 50 %
Answer #2 | 05/01 2014 16:26
You're both wrong. Annual means that 29.90% is the total interest for each year, not the amount each month. However, some interest is charged monthly, not just once. The interest each month is 1/12th of 29.90%. This means that if the balance on the card stays the same for a year, then the total of all 12 interest charges (if you add them together) would be 29.90%.
Positive: 50 %
Answer #3 | 05/01 2014 21:42
let us simplify this. 30% per yr / 12 months per year = 2.5% interest per month charged on the unpaid balance. [
Positive: 33.333333333333 %
Answer #4 | 05/01 2014 15:30
the monthly rate is the twelfth root of 1.299, not 29.9 / 12 not quite the same, but in any case just make sure you pay it all off within a year. note well the previous answer: minimum monthly payment will not keep you on schedule to get everything paid in one year.
Positive: 33.333333333333 %
Answer #5 | 05/01 2014 14:03
You are both partially right. Interest is charged monthly but 29.90% is the annual rate. The monthly rate would be 29.90%/12 or 2.1947%. With most of these, if you don't have it paid off within 12 months, the interest is retroactive back to the purchase date so get it paid off. Also, with most of these plans, if you only make the minimum payment, you will fall short of paying it off within 12 months.

Possible answer