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Chapter 8

  • Charge It Right
  • You Will Know
  • Shopping for a Credit Card
  • Cost of Making Minimum Payment
  • Benefit of Making Larger Payments
  • Finance Charge Calculation
  • Correcting Credit Problems

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    Finance Charge
    Calculation





  • APR is 18%
  • Daily periodic rate is 0.0493% (18% divided by 365 days)
  • Multiply the average daily balance ($200) by the daily periodic rate
  • Equals $.10 per day (for each day you have the $200 balance)
  • Finance charge is $.10 x 30 days or $3.00
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