18 Jun 2008 The suit alleges that Chase computed the daily periodic rate applied to the plaintiff's balance based on a 365 day year when it was a 366 day The daily periodic rate, sometimes called the daily rate, is a type of periodic rate that’s applied to your daily balance or average daily balance to calculate your credit card finance charge, depending on the method your credit card issuer uses for finance charge calculations. According to the Bureau of Consumer Protection, the daily periodic rate (DPR) is the APR divided by 365 (some credit card issuers divide by 360). 1 So, if your APR is 15%, your DPR is .0411%. At the end of the first day, you apply the daily periodic rate: $10,000 x 0.00011 = $1.10. The customer's new balance is $10,001.10. Next day, you apply the daily rate again, and so on. If the customer doesn't make any payments, at the end of the year the balance will be $10,408.08. Thus, to find the monthly rate, divide by 12. Divide by 365 for the daily rate. So, if a savings account yields 2 percent annually, this amounts to a daily periodic interest rate of about 0.005479452 percent, the quotient of two divided by 365. The periodic rate equals the annual interest rate divided by the number of periods. For example, the interest on a home loan is usually calculated monthly, so if the annual interest rate is 4 percent, then you divide that by 12 and get 0.33 percent. That’s your interest every month.

## The formula for calculating interest expense from the APR is: Total Credit Card Interest for Month = Balance x Daily Periodic Rate x Number of Days in Billing

VISA Platinum Shared Secured, Annual Percentage Rate, Daily Periodic Rate. Standard Rate Purchases, 10.95% .030000%. Late Fee - If a payment is 10 days For all accounts except Checking accounts, dividends are calculated by the daily balance method which applies a daily periodic rate to the principal in the If a daily periodic rate is multiplied by the balance on each day in the billing cycle, the finance charge is the sum of the products. If the daily periodic rate is This method applies a daily periodic rate to the average daily balance in the account for the period. The average daily balance is calculated by adding the principal The daily balance method applies a daily periodic rate to the principal in the account each day. Annual percentage yield (APY) assumes interest remains on

### 18 Sep 2019 These lenders often quote an annual percentage rate (APR), glossing over this daily periodic rate calculation. You can identify your daily periodic

Interest Rates and Interest Charges Visa® Annual Percentage Rate (APR) for Daily Periodic Rate: The daily periodic rate used to calculate interest for your VISA Platinum Shared Secured, Annual Percentage Rate, Daily Periodic Rate. Standard Rate Purchases, 10.95% .030000%. Late Fee - If a payment is 10 days For all accounts except Checking accounts, dividends are calculated by the daily balance method which applies a daily periodic rate to the principal in the If a daily periodic rate is multiplied by the balance on each day in the billing cycle, the finance charge is the sum of the products. If the daily periodic rate is