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9 April, 11:50

A credit card issuer charges an APR of 19.66%, and its billing cycle is 30 days long. What is its periodic interest rate? Round your answer to the nearest hundredth of a percent.

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  1. 9 April, 12:26
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    APR = Annual Percentage Rate

    billing cycle = 30 days or monthly

    = 12 months/year

    Periodic interest rate = APR/billing cycle

    Periodic interest rate = 19.66%/year / (12 month/year)

    = 1.6383%/month

    =1.64% every billing cycle

    Credit card issuer will charge 1.64% per billing cycle
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