Niki & Jacob

What does APR stand for?

APR stands for? ARP stands for Annual precentage rate

how to figure out monthly rate?

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ARP High or low?

when looking into a intrest rate pertaining ot a loan or credit card, you odviously want a lower intrest rate so you are not paying as much on money that you dont own.

principal rate and time all represent?

Rate is how much intrest your paying monthly for the loan. time odviously represents how much time it will take to pay off that loan and also efects how much intrest you will pay over all. principal is how much of a loan you have taken out. all of these work hand in hand.
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4 ways finance charges can be calculated

1. Adjust balance-the adjusted balance method uses the balance at the beginning of the billing cycle and subtracts any payments you made. Purchases are not included in the balance. This is the least expensive method of calculating finance charges.

2.Average daily balance-The average daily balance method uses the average of your balance during the billing cycle. Each day's balance is added together and divided by the number of days in the billing cycle This is the most common way finance charges are calculated.

3.Double billing cycle-The double billing cycle uses the average daily balance of the current and previous billing cycles. This is the most expensive way finance charges are calculated. Fortunately for credit cardholders, the double billing cycle method of calculating finance charges is now against the law.

4. Ending balance-The ending balance method uses your beginning balance minus payments plus charges made during the billing cycle. The number of days in the billing cycle doesn't affect the amount of the finance charge.

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