What is finance charge and how do you figure it out?

Answer 1

http://www.wisegeek.com/what-is-a-finance-charge.htm

Answer 2

Methods of calculating the finance charge on a charge account or credit card vary with the lender and the credit rating and payment history of the borrower. The finance charge includes a computed monthly interest payment on the total or average balance (unless the previous bill was paid full within about ten days after billing) plus various late payment fees and cash advance or balance transfer fees. There are also foreign currency conversion fees. Each charge account comes with a disclosure statement, which lenders often change to raise the finance charges.