Question

A credit card issuer charges an APR of 15.77%, and its billing cycle is 30 days long. What is it periodic interest rate?

Answer 1

Given:
Billing cycle = 30 days long
APR = 15.77%

There is 365 days in a year.

365 / 30 = 12.17

15.77% / 12.17 = 1.2958% or 1.30%

The periodic interest rate is 1.30%.