zimnyi wrote:Ok so here is how I see it and correct me if I am wrong. After the first cycle, Mike paid 500 bucks of the $1000 dollars he charged. The interest will be the APR of .0924/365 to find the daily periodic rate which is .0002531. That number is multiplied by the FULL 1000 dollars that he charged which equals .2531 and then times it by 31 days in a billing cycle which equals an interest charge of $7.85. This is how I understand it. Am I doing ok so far?
As far as I know that's right.
Now, next is where I am lost. Mike now has a balance of $507.85 before he charges the $300 in his next cycle. Is the 300 bucks that he subsequently charged still eligible for the 25 day grace period or is that 300 bucks now calculated into the $507.85?
It is eligible for the grace period if the $300 is paid in full. The iffy part is that the law requires payments to be applied to higher interest balances first and that could mean the payment would first be applied to the $507.85 before the $300, I don't know how the APR is calculated in this situation. This is a stumper and I would have to think about it further because I don't want to give the wrong answer. Have you tried asking the credit card customer service dept? It would be amusing to hear them try and answer that.
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