Interest rate math help?

$8,500 credit card balance

Interest rate is 12.95%

8500 / 12.95 = 656.37

656.37 / 12(months) = 54.70 per month in interest charges.

Is this correct? I am buying a bike and want to put it on two credit cards that offer 0% APR for 12 months. Just wondering if all the trouble is worth saving the money. Thanks in advance

Interest rate math help?credit union

Sorry, no...APR is not actually an annual rate...it is compounded daily and some cards will charge other fees...credit cards are often the most expensive form of consumer credit...except maybe a cash advance...there are actually several types of credit cards...you may be better off getting a card with an annual fee, because they tend to keep their rates low...but, I think this is a bad idea...most cards will compound daily immmediately on purchases that you make after the initial purchase because you have a balance on the card...it is consumer law that your credit card company explain the fees and charges to you, so don%26#039;t be afraid to ask...

Interest rate math help? loan

Your payment for an $8500 credit card over 60 payments at 12.95% would be around $193.00 per month and would cost more than $3,000 in interest over the life of the repayment so your 0% option would be a good one; however, that%26#039;s assuming that you don%26#039;t miss a payment by a single day or else!!! Can you afford to pay $8500 within 12 months??? Those 0% interest cards make no money for the lender so they are quick to add on fees whenever they can and you end up paying far more than 12.95% so be careful. Read the fine print very carefully. At the 0% rate for one year, you will need to pay $708.33 per month to repay $8500 in 12 months. Why not consider a bank loan instead of a credit card??? Also, make sure your budget factors in the cost of insurance and maintenance and other costs associated with your purchase.