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Izzy just received a credit card offer in the mail. The credit card has an APR of 17.16%. What is the monthly interest rate that will apply to any unpaid balances on this credit card
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Izzy just received a credit card offer in the mail. The credit card has an APR of 17.16%. What is the monthly interest rate that will apply to any unpaid balances on this credit card

User Angelin Nadar
by
4.2k points

1 Answer

8 votes

Answer:

1.43%

Step-by-step explanation:

Given that the monthly interest rate that will apply to any unpaid balances on the credit card will be in compound interest. And therefore, for an APR (Annual Percentage Rate) of 17.16% and assuming a 12 months

Then we have 17.16% divided by the 12 months available.

Hence, in this case, we have 1.43% as the correct answer.

User V Nikoyan
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4.7k points
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