This might seem like a silly question, but I'm trying to work out how much something will cost if I pay for it on my credit card instead of paying monthly to the company at their interest rate. The problem is that my online card account only shows the rates in monthly (1.2916%), and the company offering credit only show theirs annually (23.46%).
Do I simply multiply the monthly rate by 12 – giving me 15.49% - or does it not work like that?
If that's the case, then there's something very weird going on with my maths.
Their website states:
Deposit: 1 x £194.93 Monthly Payments: 11 x £78.63 Total: £1059.86 Instalments APR: 23.46%
If I try to work it out using their figures, I get a wildly different total!
(11 instalments * £78.63) = £864.93 £864.93 * 1.2346 = £1067.82 £1067.84 + £194.93 = £1262.77