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Calculate finance charges

balance of 826.65 APR of 16.6%

1 Answer

5 votes

Answer:

Finance charge is 137.22

Explanation:

Finance charge is the interest charged based on the debt owed as a result of credit card. It is the fee charged when the debt is not paid in full on the payment due date. The annual percentage rate (APR) is the rate charged for borrowing annually. The finance charge is calculated using the formula:

Finance charge = Balance × APR

Given that:

Balance = 826.65 and APR = 16.6% = 0.166

Finance charge = Balance × APR = 826.65 × 0.166 = 137.22

Finance charge is 137.22

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