If someone keeps using the card without the entire balance being paid off, is interest calculated on the whole amount?
In: Mathematics
Whatever remains from the statement balance after your payment due date gets charged interest. The interest usually gets compounded daily. That means on day 1 after your due date you’ll get charged the APR divided by 365 days as a percentage of your statement balance and that interest is added immediately to the principal the next day to be charged another day’s worth of interest. Whatever credit you use after your statement comes, won’t be added to the principal for the interest calculation until your next statement due date.
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