• A is the total credit amount ($) • CR is the credit rate (%) ## How to Calculate Credit Cost? The following example problems outline how to calculate Credit Cost. Example Problem #1: 1. First, determine the total credit amount ($). The total credit amount ($) is given as 13,000. 2. Next, determine the credit rate (%). The credit rate (%) is provided as 5. 3. Finally, calculate the Credit Cost using the equation above: CC = A * CR/100 The values given above are inserted into the equation below: CC = 13,000 * 5/100 = 650 ($)

Example Problem #2:

The variables needed for this problem are provided below:

total credit amount ($) = 16,000 credit rate (%) = 5 Entering these values and solving gives: CC = A * CR/100 = 800 ($)