Question
credit card fee calculation?
I want to withdrawal cash from the bank using a credit card. I want to withdrawal $200 The credit card cost/fees are: Cash advance APR: Prime Rate plus 11.99% How much will I have to pay at the end (including all the fees)? Also, what is the difference between cash advance and cash advance APR. What does APR mean? It also says that the cash advance fee: 3% min $5.00 What is the difference between this and cash advance APR? (Please calculate both...)
4 weeks ago - 1 answers
Best Answer
Chosen by Asker
Cash Advance Fee is an upfront fee charged when you take out a cash advance: 200 x 3% = $6. I am not sure but I think interest is payable on this as well. APR = Annual Percentage Rate - this is your interest rate. Prime rate = interest rate used as a bench mark, currently 3.25% So, your interest rate will be 11.99% + 3.25% = 15.24% So, effective borrowed amount = $200 + $6 = $206 One months interest = 206 / 12 x 15.24% = $2.62 (This assumes monthly compounding, card might do daily compounding in which case the interest owed would be $2.60)
by MadMan
4 weeks ago
Asker's Rating: 