Final answer:
To calculate the periodic interest rate from an APR of 12.49% for a 30-day billing cycle, you divide the APR by 365 to find the daily rate and then multiply by the number of days in the billing cycle. The closest option to the calculated rate is 1.03%.
Step-by-step explanation:
The question asks about the calculation of the periodic interest rate from an Annual Percentage Rate (APR) of 12.49% with a billing cycle of 30 days. To find the periodic interest rate, divide the APR by the number of billing cycles in a year. Assuming there are about 365 days in a year, we would calculate the daily periodic rate and then multiply it by the number of days in the billing cycle.
Daily periodic rate = APR / 365
Periodic interest rate (30-day billing cycle) = Daily periodic rate × 30
Let's do the math:
Daily periodic rate = 12.49% / 365 = 0.0342%
Periodic interest rate = 0.0342% × 30 = 1.026%
Therefore, the closest option here is A. 1.03%, which is approximately the calculated periodic interest rate for a billing cycle of 30 days.