Question

Your credit card company charges you 1.24 percent per month. What is the APR on your credit card?

a. 15.94%
b. 15.41%
c. 14.88%
d. 14.14%
e. 16.73%

Answer 1

The APR on your credit card, you need to calculate the annual interest rate based on the monthly interest rate. The APR on your credit card is 14.88%.

Step-by-step explanation:

To find the APR on your credit card, you need to calculate the annual interest rate based on the monthly interest rate charged by your credit card company.

Here's the calculation:

1. Convert the monthly interest rate to a decimal by dividing it by 100. In this case, the monthly interest rate is 1.24%, so the decimal equivalent is 0.0124.
   
2. Calculate the annual interest rate by multiplying the monthly interest rate by 12. In this case, the annual interest rate is 0.0124 * 12 = 0.1488, or 14.88%.

Therefore, the APR on your credit card is 14.88%, which corresponds to option c.