QuestionJuly 16, 2025

1. A primary credit card holder has a current APR of 17.75% What is the monthly periodic interest rate, rounded to the nearest hundredth of a percent? a. 1.30% b. 1.48% C. 0.05% d. 17.75%

1. A primary credit card holder has a current APR of 17.75% What is the monthly periodic interest rate, rounded to the nearest hundredth of a percent? a. 1.30% b. 1.48% C. 0.05% d. 17.75%
1. A primary credit card holder has a current APR of 17.75%  What is the
monthly periodic interest rate, rounded to the nearest hundredth of a
percent?
a. 1.30% 
b. 1.48% 
C. 0.05% 
d. 17.75%

Solution
4.2(235 votes)

Answer

b. 1.48\% Explanation 1. Convert APR to Monthly Rate Divide the annual percentage rate (APR) by 12 months. **Monthly Rate = \frac{APR}{12}** 2. Calculate Monthly Rate Substitute the given APR: **Monthly Rate = \frac{17.75}{12} = 1.4791667\%** 3. Round to Nearest Hundredth Round 1.4791667 to the nearest hundredth: 1.48\%

Explanation

1. Convert APR to Monthly Rate<br /> Divide the annual percentage rate (APR) by 12 months. **Monthly Rate = \frac{APR}{12}**<br /><br />2. Calculate Monthly Rate<br /> Substitute the given APR: **Monthly Rate = \frac{17.75}{12} = 1.4791667\%**<br /><br />3. Round to Nearest Hundredth<br /> Round 1.4791667 to the nearest hundredth: $1.48\%$
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