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Metrobank Cash Advance Interest Formula:
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Metrobank cash advance interest is the fee charged by Metrobank for cash advances obtained through credit cards. It is calculated based on the amount advanced, the monthly interest rate, and the duration of the advance.
The calculator uses the Metrobank cash advance interest formula:
Where:
Explanation: The formula calculates the total interest by multiplying the principal amount by the monthly interest rate and the number of months.
Details: Understanding cash advance interest helps customers make informed financial decisions, plan repayments, and avoid unexpected charges on their credit card statements.
Tips: Enter the cash advance amount in dollars, the monthly interest rate as a decimal (e.g., 0.035 for 3.5%), and the number of months. All values must be positive numbers.
Q1: What is the typical interest rate for Metrobank cash advances?
A: Metrobank cash advance interest rates typically range from 2% to 4% per month, but exact rates may vary based on the card type and customer relationship.
Q2: Are there additional fees for cash advances?
A: Yes, Metrobank usually charges a cash advance fee (typically 3-5% of the amount) in addition to the monthly interest.
Q3: When does interest start accruing on cash advances?
A: Interest on cash advances typically starts accruing immediately from the transaction date, unlike regular purchases which have a grace period.
Q4: How can I minimize cash advance interest?
A: Pay off the cash advance as quickly as possible to minimize interest charges and consider alternative funding options with lower rates.
Q5: Is cash advance interest tax-deductible?
A: Generally, personal cash advance interest is not tax-deductible. Consult a tax professional for advice specific to your situation.