Calculating Finance Charges

Lesson Goals

When you receive your monthly credit card statement, do you take the time to look at the finance charges that are being assessed on your account?

Knowing how finance charges are calculated can give you a clearer picture of your financial situation and will allow you to spot any potential issues with your account.

In this lesson, you will explore the different types of APR's you can expect to find on statements and how they are applied. You will also learn to calculate finance charges using the Average Daily Balance method and discover the effects of negative amortization. Finally, you will learn about client issues that may arise due to a misunderstanding about finance charges.

Approximate Completion Time

35 minutes

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