Question

Expert Card has an APR of 18.3% compounded monthly. Passport has a daily periodic interest rate of 0.0498%. Explore has a monthly periodic interest rate of 1.75%. Which card has the higher APR?

A.) expert card
B.) passport
C.) explore
D.) expert and explore are equally high

Answer 1

D. Expert and explore are equally high

Answer 2

Answer: EXPLORE.

Explanation:

APR is an acronym for Annual Percentage Rate. Which indicates the charge for borrowing or earnings through an investment.

Expert Card has an Annual Percentage Rate of 18.3%

Passport has a daily percentage rate of 0.0498%. This figure accumulated in a 365 days year will be

0.0498 × 365 = 18.2%

Explore has a monthly percentage rate of 1.75%. This figure accumulated in a 12 calender year will be

1.75 × 12 = 21%

Clearly from our calculations, Explore has the highest annual percentage rate at 21%.