The monthly finance charge for a credit card is typically calculated using the average daily balance method or the adjusted balance method. In the average daily balance method, the issuer sums the daily balances throughout the billing cycle and divides by the number of days in the cycle, then multiplies by the monthly interest rate. The adjusted balance method, on the other hand, calculates the balance after payments and credits are applied, before applying the interest rate. The specific method used can vary by issuer and card agreement.
To calculate the finance charge, multiply the credit card balance by the monthly interest rate. For a balance of $3,299.19 at a monthly rate of 1.2% (0.012), the finance charge is: Finance Charge = $3,299.19 × 0.012 = $39.59. Therefore, the finance charge for that month is approximately $39.59.
Calculate the finance charge on a credit card balance of 3,299.19 at a monthly rate of 1.2%.
39.59
change the percent to a decimal
$2.99
To calculate the finance charge, multiply the credit card balance by the monthly interest rate. For a balance of $3,299.19 at a monthly rate of 1.2% (0.012), the finance charge is: Finance Charge = $3,299.19 × 0.012 = $39.59. Therefore, the finance charge for that month is approximately $39.59.
Calculate the finance charge on a credit card balance of 3,299.19 at a monthly rate of 1.2%.
Calculate the finance charge on a credit card balance of 3,299.19 at a monthly rate of 1.2%.
$39.59
$39.59
39.59
change the percent to a decimal
$2.99
no, but your finance charge will be lower
change the percent to a decimal
Finance charges are applied to credit card balances that aren't paid before the grace period. Different credit cards calculate finance charges in different ways.
18.19