Question

16) Which credit card feature determines the amount of interest paid on unpaid balances?

A) annual percentage rate

B) grace period

C) balance-transfer fee

D) cash-advance fee

Answer 1

Answer: ANNUAL PERCENTAGE RATE, is the correct answer.

Explanation: APR is the credit card's interest rate this is the price you pay for borrowing money.

For Example- First Step- If you currently owe $500 on your credit card throughout the month and your APR rate is 10% then you can calculate your monthly interest rate by simply dividing the 10% by 12, which is approximately about 0.83%.

Second step- Then multiply $500*0.83 for calculating the monthly amount due which will be $415 per month