Question

The way the bank determines the balance on which to calculate your interest is known as _____.

A.

minimum finance charge

B.

method of computing balance

C.

minimum monthly payment

D.

annual percentage rate

Answer 1

The answer is B. Method of computing balance ;)

Answer 2

The way a bank determines the balance on which you calculate your interest is known as an annual percentage rate. In reality, the banks take the annual percentage rate and charge a person on their daily interest rate. You can find out the daily rate by taking the APR, annual percentage rate, and divide it by the number of days in a year. The correct answer is D.