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Need help calculating interest on overdraft Watch

    • Thread Starter
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    Hi,

    I'm terrible with numbers and really do not understand anything about overdrafts and interest.

    I have to dip into my overdraft for a while. I'll probably use about £500 of my agreed overdraft, and I won't be able to pay it off for 1 month. The interest rate is 18.9% EAR (variable)

    How much interest will I actually pay then on a months being £500 overdrawn?

    Thanks
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    Around £8
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    (1+x/100)^12 = 1.189

    x=1.45%.

    So £7.26 :P.
    • Thread Starter
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    thanks you guys xx
 
 
 
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