Question

If the APR on my credit card is 35.26%, what is the monthly interest rate?

a) 2.94%
b) 2.94
c) 0.0294
d) 29.4%

Answer 1

To convert an APR of 35.26% to a monthly interest rate, divide by 12. The monthly rate is then 2.94%, making the answer choice a) 2.94% correct.

Step-by-step explanation:

The question asks about converting the annual percentage rate (APR) on a credit card to a monthly interest rate. The APR given is 35.26%. To find the monthly interest rate, we divide the APR by the number of months in a year. The calculation goes as follows:

1. Divide the APR by 12 (the number of months in a year):
2. 35.26% ÷ 12 = 2.9383333...
3. Round the result to two decimal places if necessary.
4. The monthly interest rate is 2.94%

The correct answer is a) 2.94%, as monthly rates are typically expressed as percentages. However, the exact value before rounding was 0.02938333, which could be written as 2.9383333%, so it is important to ensure the correct formatting.