How to calculate credit card compound interest

The calculation of credit card compound interest is to calculate the interest after adding the principal and interest. Generally, the interest charged on credit cards is divided into cash withdrawal interest and overdue interest, and is generally charged at a daily interest rate of 0.5%. Compound interest is calculated monthly from the date of transaction plus the principal and interest until the date of settlement.

Compound interest (CompoundInterest) refers to the interest calculation method in which the interest for a certain interest calculation period is calculated by adding the principal plus the total interest accumulated in the previous period when calculating interest, which is commonly referred to as "Benefit speaks of profit" and "profit compounding profit".

The characteristic of compound interest calculation is that the sum of principal and interest at the end of the previous period is used as the principal of the next period. The amount of principal in each period is different during calculation. The present value of compound interest refers to the principal that must be invested today to reach a specific amount of funds in the future when compound interest is calculated. The so-called compound interest, also known as interest plus interest, refers to the method of making a new round of investment with interest after a deposit or investment has received a return.

The compound interest future value refers to the sum of the principal after the principal earns interest within the agreed period, the interest is added to the principal and then the interest is calculated, and the period is rolled over to the end of the agreed period. To put it simply, it means depositing A at the beginning of the period, taking i as the interest rate, and depositing the sum of principal and interest after n periods. Formula: F=A(1i)^n. Since inflation rate and interest rate are closely related, like two sides of the same coin, the formula for calculating the future value of compound interest can also be used to calculate the actual value of a specific fund in different years. Simply replace the interest rate in the formula with the inflation rate.

The future value of an ordinary annuity: refers to the sum of principal and interest of equal amounts of income or expenditure at the end of each period within a certain period, that is, the amount of each period is converted to the future value at the end of the last period based on compound interest, and then The total is the future value of the annuity. If the annuity has a large number of periods, it is obviously quite cumbersome to calculate the future value using the above method. Since the annual payments are equal and the coefficients for converting the future value are regular, a simple calculation method can be found. The significance of compound interest is that the benefits obtained can continue to generate benefits. The core of compound interest is to add the interest calculated on the principal of the previous period to the principal of the subsequent interest calculation, resulting in the interest obtained by the parties involved in compound interest becoming larger and larger. thus generating huge profits.

What is the interest rate of credit card?

Generally, the daily interest rate for credit card interest is 0.05%, which means that the monthly interest on 10,000 yuan is about 150 yuan.

1. Credit cards are generally repaid on time and there is no interest for full repayment. In addition, overdraft cash withdrawals also charge a certain amount of interest and handling fees. The interest is calculated on a daily basis, which is also very high. It starts from the day when the cash is withdrawn. Interest will be calculated from now on, and the handling fee will be charged at 0.5% (minimum 2 yuan/transaction). You can control your credit card consumption and repay it on time every month. The credit card will always be interest-free. You only need to refund the bank amount you spent. If you overdue the payment without interest or fail to repay in full, the bank will charge interest.

2. Credit card interest is calculated from the date of purchase. Interest is charged at 5% per day and is compounded monthly. That is to say, if the interest is not paid this month, interest will also accumulate next month. In addition to interest, failure to repay on time using a credit card will also incur some other fees, such as late payment fees, retention fees, etc. Cardholders should pay attention to the cost standards of credit cards when using them. Credit cards are generally repaid on time, and full repayment is interest-free. You can control your credit card consumption every month and repay it on time. The credit card can always be interest-free. Only the amount you spent will be refunded to the bank without interest.

If necessary, we recommend you to use Youqianhua, which is a credit service brand under Duxiaoman Financial (original name: Baidu Youqianhua, renamed "Youqianhua" in June 2018) , big brands are reliable, have low interest rates and are trustworthy.

Have money to spend - Manyidai, the maximum loan limit is 200,000, and the daily interest rate starts as low as 0.02%.

The daily interest rate of credit cards is 0.5%, how to calculate compound interest on a monthly basis

5000, five thousandths per day, the first month is 150/10000 (one month is calculated as 30 days)

At the end of the first month, your interest is 150/10000 of 5000, which is 75 Yuan,

The interest for the second month is 150/100,000 of 5,000 (500075), which is 76.125 yuan.

The interest for the second month is 5,000 (50007576.125) 150 ten thousandths, which is 76.268 yuan

By analogy, if you owe the bank 5,000 yuan in six months, you will have to pay back a total of 5,467.2163 yuan.

That is to say, the interest is settled once a month, and the settled interest starts to accrue interest as the principal in the next month, commonly known as the donkey rolling.

Extended information:

The characteristic of compound interest calculation is that the sum of the principal and interest at the end of the previous period is used as the principal of the next period. The amount of the principal of each period is different during calculation. . The formula for calculating compound interest is:

The present value of compound interest refers to the principal that must be invested today to reach a specific amount of funds in the future when compound interest is calculated. The so-called compound interest, also known as interest plus interest, refers to the method of making a new round of investment with interest after a deposit or investment has received a return.

The compound interest future value refers to the sum of the principal after the principal earns interest within the agreed period, the interest is added to the principal and then the interest is calculated, and the period is rolled over to the end of the agreed period. Simply put, it means depositing A at the beginning of the period, taking i as the interest rate, and depositing the sum of principal and interest after n periods. Formula: F=A(1i)^n.

The compound interest method is used to calculate interest based on the monthly interest rate. The annual interest calculation is to calculate the interest based on the annual interest rate.

The formula of the compound interest method = this Gold [(1 interest rate) term power - 1]

If you borrow 10,000 yuan and pay it back after 2 months, the monthly interest rate is 3%, and the interest calculated using the compound interest method is: 10,000 [(10.03) _-1]

Daily interest calculation means that as long as the policy exists, the company will calculate interest for the customer every day. When the customer applies for insurance and when the policy is terminated, if it is not the beginning or end of the month, the company will calculate interest based on the actual number of days.

For example, if a customer purchases insurance on January 10th, for the 21 days from January 10th to 31st, the company will calculate interest for the customer day by day based on the accumulated interest rate published on 3rd.

Monthly compound interest is settled once a month, and the total amount after the previous month's settlement will be used as the base for the next month's settlement. The Company publishes cumulative interest rates monthly on an external website. The accumulated interest-bearing account amount increases with compound interest.