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6 June, 16:39

A credit card issuer charges an APR of 15.77%, and its billing cycle is 30 days long. What is it periodic interest rate?

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  1. 6 June, 16:46
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    Given:

    Billing cycle = 30 days long

    APR = 15.77%

    There is 365 days in a year.

    365 / 30 = 12.17

    15.77% / 12.17 = 1.2958% or 1.30%

    The periodic interest rate is 1.30%.
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