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LO2: Select appropriate methods and carry out financial calculations



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3 Performing Financial Calculations

LO2: Select appropriate methods and carry out financial calculations

Methods to carry out financial calculations


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. To find out how your creditor calculates your charge, look on the back of a recent billing statement. You should find an explanation there.

Below are six ways finance charges can be calculated. Click on the links for a more detailed explanation including example of how the charge works.



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