I need help with in Personal Finance.

Please help!! I need help with someone who knows how to explain how to find interest , apr, and finance charge?

• Please ! I need a step by step explanation on how to calculate compound interest(quarterly and monthly), finance charge, unpaid balance method,maturity, average daily balance method, and apr.

• Answer:

  Compound Interest Take the rate and divide the number of compounds. If interest rate is 6%APR compounded monthly, take 6% divide by 12. Now multiply .005 (based on our example) times principle this will give you interest for the first period. Add this to your principle and multiply again .005 again to get second period. Finance charges on unpaid balance - based on the balance at the end of the period, this is the rate times the balance. Finance charges on average daily balance - if your cycle is every 30 days then we add up the balances of each day and divide by 30 this will give you your average daily balance.