I have a credit card and the balance is paid off because the 0% APR expired but I might still make some purchases on it if I need to so I am going to keep the account open. I am going to have a 14.99% interest rate. Through some research I have read that the monthly rate will be around 1.25% meaning that for every $80 I spend, I will have $1 worth of interest. All of this makes sense to me, but what concerns me is Compound Interest. I do not see on my account where it says anything about compound interest. Also terms like Effective APR do not appear anywhere on my statement. So lets say I buy something for $1000, the monthly interest would be $12.50, right? And where does compound interest come into play?