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A credit card issuer charges an apr of 13.50%, and its billing cycle is 30 days long. what is its periodic interest rate?

2 Answers

3 votes

The answer is 1.11% Apex

User Wouter Van Damme
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6 votes
Let’s just say that the entire year is 365 days. So, we need to divide the APR (13.50%) to 365. This gives us a value of 0.037% and since the the billing cycle is 30 days, we need to multiply 0.037% to 30 to get it’s periodic interest rate. Therefore, the periodic interest rate is 1.11%.
User Nick Bernard
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