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Mia received a credit card offer in the mail. The credit card has an annual percentage rate of 26%. What is the approximate monthly interest rate that will apply to any unpaid balances on this credit card?
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Mia received a credit card offer in the mail. The credit card has an annual percentage rate of 26%. What is the approximate monthly interest rate that will apply to any unpaid balances on this credit card?

User RiveN
by
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1 Answer

3 votes

Answer:

Monthly interest rate = 2.16666667%

Step-by-step explanation:

Given:

Annual percentage rate = 26% = 26 / 100 = 0.26

Total number of months in a year = 12 month

Monthly interest rate = ?

Computation of monthly interest rate :

Monthly interest rate = Annual percentage rate / Total number of months in a year

Monthly interest rate = 0.26 / 12

Monthly interest rate = 0.0216666667

Monthly interest rate = 2.16666667%

User Zoaz
by
4.6k points
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