How Interest Rate Compounding Works and Why It Costs You More Than You Expect

A $5,000 credit card balance at 20% APR compounded daily can exceed $6,100 in a year—without a single new purchase. Here's exactly how that happens.

A $5,000 credit card balance at 20% APR compounded daily can exceed $6,100 in a year—without a single new purchase. Here's exactly how that happens.