how do you figure out interest rates.

[roomservice]

What is the name of your state? alaska
I am having trouble believing these figures. If someone charges $1000. January 1st, paying 10% interest rate. How much TOTAL would they owe on febuary 1st?.... The answer is $ 1100 dollars, right?

 

[Happy Trails]

What is the name of your state? alaska
I am having trouble believing these figures. If someone charges $1000. January 1st, paying 10% interest rate. How much TOTAL would they owe on febuary 1st?.... The answer is $ 1100 dollars, right?

You don't give enough information to answer your non-legal question.

However you can go here to find your answer:
http://www.careonecredit.com/Knowledge/statement-terms.aspx

 

[efflandt]

It depends what period the interest rate is for. Unless it is a flat rate regardless of the time to pay it back, it is more typically an annual rate compounded over some period (daily or monthly). So for credit cards or other loans that are compounded daily, it would typically be (rate / #days_in_year) compounded over the period (31 days in this case).

So in 31 days about $1008.50 might be due for $1000 loan (compounded daily considering 366 days for leap year), unless you agreed to 10%/month (which would not be recommended).

 

[roomservice]

thanks

maybe the rates are not as bad as I thought! I was asking this question to avoid legal bankruptcy, so in the future Ill hopefully ask more directly related legal questions. Giving enough details in the post is important and I will also improve upon that in future posts.