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A primary credit card holder has a current APR of 16.75%. What is the monthly periodic interest rate, rounded to the nearest hundredth of a percent?

User Luben
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To calculate the monthly periodic interest rate from an annual percentage rate (APR), we need to divide the APR by 12 (the number of months in a year). We can use the following formula:

Monthly periodic interest rate = APR / 12

In this case, the APR is 16.75%, so we can plug it into the formula and simplify:

Monthly periodic interest rate = 16.75% / 12

Monthly periodic interest rate = 1.395833...%

Rounding to the nearest hundredth of a percent, we get:

Monthly periodic interest rate = 1.40%

Therefore, the monthly periodic interest rate for the primary credit card holder is 1.40%.

User Arasa
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