Question

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. Show your work.

Answer 1

19.66×(30÷365)=1.62%
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Answer 2

The answer is 1.62%

Explanation:

A credit card issuer charges an APR of 19.66%

The billing cycle is 30 days

We have to find the periodic interest rate. The periodic rate is found by dividing the APR by the number of billing periods in the year.

The value here becomes:

`19.66*(30)/(365)` = 1.615%≈1.62%

Hence, the answer is 1.62%