Mathematical finance | Interest rates

Credit card interest

Credit card interest is a way in which credit card issuers generate revenue. A card issuer is a bank or credit union that gives a consumer (the cardholder) a card or account number that can be used with various payees to make payments and borrow money from the bank simultaneously. The bank pays the payee and then charges the cardholder interest over the time the money remains borrowed. Banks suffer losses when cardholders do not pay back the borrowed money as agreed. As a result, optimal calculation of interest based on any information they have about the cardholder's credit risk is key to a card issuer's profitability. Before determining what interest rate to offer, banks typically check national, and international (if applicable), credit bureau reports to identify the borrowing history of the card holder applicant with other banks and conduct detailed interviews and documentation of the applicant's finances. (Wikipedia).

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This video explains how to solve interest problems using the simple interest formula. http://mathispower4u.yolasite.com/

From playlist Finance: Simple and Compounded Interest

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From playlist Compound Interest

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How to calculate Credit Card Interest

In this tutorial I will show you how to calculate how much interest you have to pay on your credit card, if you pay after the interest free period. (NOTE: I can't guarantee this is the same as what your credit card company does - please check their policies).

From playlist Maths A / General Course, Grade 11/12, High School, Queensland, Australia

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TabletClass Math: https://tcmathacademy.com/ How to use basic math to save money to offset the rising cost of inflation. For more math help to include math lessons, practice problems and math tutorials check out my full math help program at https://tcmathacademy.com/ Math Notes:

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Institutional roles in issuing and processing credit cards | Khan Academy

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Related pages

Credit risk | Wall Street Journal prime rate | Federal funds rate | Compound interest | Equifax