Sunday, December 4, 2011

How do i calculate the average interest rate of all my 5 credit cards?

For instance if credit card A has an interest rate of 12% and the balance is $7000, cc B has a rate of 9% and the balance is $1300, cc C has a rate of 16% and the balance is $3000,...........................


What is the average interest rate?


A website that explains how to calculate it would be helpful also.|||I think you're looking for more of a weighted average:





7000 X 12% = 840


1300 X 9% = 117





Add the 7000 and 1300 = 8300


Add the 840 and 117 = 957





Divide the 957 by the 8300


your average weighted interest is 11.53%|||Add the five rates together such as .12 .09 .18 .165 .22 etc and then divide by 5

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