Convert the credit card rate to the APR. Oregon, \( 1 \frac{1}{4} \% \) per month

To convert a monthly interest rate to an Annual Percentage Rate (APR), you can simply multiply the monthly rate by 12. In Oregon's case, \( 1 \frac{1}{4} \% \) per month translates to \( 1.25\% \) per month. Multiplying \( 1.25\% \) by 12 gives you an APR of \( 15\% \). Just remember, APR is the simplified way to understand how much you’ll owe over a year! Another way to potentially elevate your understanding is to consider the impact of compounding interest. If payments on the credit card are only made monthly, you might pay interest on the interest if you carry a balance! Knowing the consequences of compounding can help you make better financial decisions and avoid unnecessary debt traps.