Hi, how would I calculate the amount due on a credit card balance of $4000 with daily interest of 0.7% for 2 months?
Is the annual rate 0.7% and it's compounded daily? Or, if 0.7% is a daily rate, how often is it compounded?
The general formula for total amount due after n years (2 months would be 2/12 years) is $\displaystyle 4000(1+\frac{r}{m})^{nm}$ Where r is the annual interest rate, m is the compounding period and n is the number of years. If it is an annual rate of 0.7% and it's compounded daily for 2 months you get $\displaystyle 4000(1+\frac{0.007}{12})^{\frac{2}{12}*12}$