Daily Periodic Rate

GeneralGlossary term

Definition

The daily interest rate on a credit card, calculated by dividing the APR by 365. A 20% APR equals approximately 0.055% daily. Used to calculate interest on carried balances.

Related terms

Compound InterestInterest calculated on both the initial principal and accumulated interest from previous periods. Often called 'interest on interest,' it's a powerful force for growing wealth over time.

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