Annual and transaction fees are not required to be included in the APR calculation for a credit card because they cannot be known in advance.

Question

Quizplus · Accepted Answer

Annual and transaction fees are not included in the APR calculation because they are not finance charges. Finance charges are the costs of borrowing money, such as interest, late fees, and over-limit fees. Annual and transaction fees are not finance charges because they are not charged for the use of borrowed money.

Annual and Transaction Fees Are Not Required to Be Included