Question

Calculate the monthly percentage rate on Rachel's credit card if the annual percentage rate is 26.4%.

(A) 2.2%
(B) 22.4%
(C) 2.64%
(D) 264%

Answer 1

To find the monthly percentage rate of Rachel's credit card with a 26.4% APR, divide the APR by 12, which gives a monthly rate of 2.2%.

Step-by-step explanation:

To calculate the monthly percentage rate on Rachel's credit card with an annual percentage rate (APR) of 26.4%, you divide the APR by 12 months:

Monthly Percentage Rate = APR / 12
Monthly Percentage Rate = 26.4% / 12
Monthly Percentage Rate = 2.2%

Therefore, the correct answer is (A) 2.2%.