Question

Jack's credit card has a 20% APR. Find the periodic interest rate from June 3

to July 2. Round your answer to two decimal places,
O A. 2.35%
O B. 1.67%
O c. 2.12%
O D. 1.64%

Answer 1

To find the periodic interest rate from June 3 to July 2 with a 20% APR, use the formula and calculate the value.

Step-by-step explanation:

To find the periodic interest rate from June 3 to July 2, we first need to determine the number of days between these two dates. There are 30 days in June, so the number of days is 30. Next, we can calculate the periodic interest rate using the formula:

Periodic Interest Rate = (1 + Annual Interest Rate)^(1/Number of Periods) - 1

Plugging in the values, we have:

Periodic Interest Rate = (1 + 0.20)^(1/30) - 1 = 0.0209589352

Rounding this to two decimal places, the periodic interest rate is approximately 2.10%.