Question : 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.
- asked by Claudio F
All Answers:
Answer #1
Add the five rates together such as .12 .09 .18 .165 .22 etc and then divide by 5
- answered by upallnight
Answer #2
I think you're looking for more of a weightedaverage:7000 X 12% = 8401300 X 9% = 117Add the 7000 and 1300 = 8300Add the 840 and117 = 957Divide the 957 by the 8300your averageweighted interest is 11.53%
- answered by Angie
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