vincentcarucci84 vincentcarucci84

01-06-2021
Mathematics

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How does a credit card company calculate finance charges on a credit card?

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iluvbianca iluvbianca

01-06-2021

A common way of calculating a finance charge on a credit card is to multiply the average daily balance by the annual percentage rate (APR) and the days in your billing cycle. The product is then divided by 365 . Mortgages also carry finance charges.

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