ARTICLE: How Is Credit Card Interest Calculated? The Schumer box lays out the all-important costs of your credit card: What are the flat fees? And what is the interest rate charged? But, HOW is that interest calculated when you're buying new stuff all month long? It's a multi-step process, which you can read about here before answering the questions that follow. Albert has a credit card with an APR of 20.7% and the following daily balances for this billing period: Days 1-3: Days 4-10: $50 $100 Days 11-25: Days 26-30: $175 $225 1. What is Albert's daily rate? Round to the nearest ten thousandth. 2. What is his average daily balance? whell st WOH 3. Assuming Albert doesn't pay it off in full, how much interest is Albert charged for this billing period? 4. Before making his minimum monthly payment, what would Albert's total credit card balance be for this billing period? 5. Your calculations calculate interest only for the entire month. Most credit card companies compound interest daily. What effect would that have on Albert's total balance for this billing ried?