If you qualify they offer a 12.9% APR what would the monthly periodic interest rate be?

Question

asked Mar 2, 2024 231k views

1 Answer

Emine · Answer 1 · 2024-03-05T20:05:14+0000

Answer:

1.075%

Explanation:

You want the monthly periodic rate corresponding to an APR of 12.9%.

There are 12 months in a year, so the monthly rate is 1/12 of the annual rate:

12.9%/12 = 1.075%

The monthly periodic rate is 1.075%.

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Additional comment

The APR does not take compounding into account, so the effective annual rate may be higher.