31.5k views
3 votes
If the APR is 22.5%, what is the monthly interest rate??

User Norris
by
7.7k points

1 Answer

1 vote

Final answer:

To find the monthly interest rate from an Annual Percentage Rate (APR) of 22.5%, divide the APR by 12 months. The resulting monthly interest rate would be 1.875%.

Step-by-step explanation:

If the Annual Percentage Rate (APR) is 22.5%, to calculate for the monthly interest rate, you divide the APR by the number of months in a year. Since there are 12 months in a year, the monthly interest rate would be calculated as follows:

APR ÷ Number of months in a year = Monthly Interest Rate

22.5% ÷ 12 = 1.875%

Therefore, the monthly interest rate would be 1.875%.

User Jysohn
by
8.2k points