The finance charges on two credit cards with the same stated annual percentage rate (APR):
A)will always be the same.
B)will be the same as the interest rate is calculated as defined by federal law.
C)will be determined by the types of credit cards used.
D)will be determined by the methods used to calculate balances.
E)will be decided by credit bureaus.

Question

Quizplus · Accepted Answer

The finance charges on two credit cards with the same stated annual percentage rate (APR) can differ based on the methods used to calculate balances, such as average daily balance or two-cycle billing. Therefore, option D is the correct answer.

The Finance Charges on Two Credit Cards with the Same