Convert the credit card rate to the APR.
Oregon: [tex]2\frac{1}{4}\%[/tex] per month.
Answer (2)
The APR for the credit card with a monthly rate of 2⅛% in Oregon is approximately 28.11%. Make sure to consider this when managing your finances.
To convert the monthly credit card rate of 2⅛% to its Annual Percentage Rate (APR), we use the formula:
APR = ( 1 + monthly rate ) 12 − 1
First, let's convert the monthly rate to a decimal.
2 4 1 % = 0.02125
Then, applying the formula:
APR = ( 1 + 0.02125 ) 12 − 1
APR = ( 1.02125 ) 12 − 1
APR = 0.2811
So, the APR for the given credit card rate is approximately 28.11%. This means that if you were to carry a balance on this credit card for a year, you would effectively pay an interest rate of 28.11%.
Correct Question:
Convert the credit card rate to the APR, Oregon 2 4 1 % per month.
The APR for a monthly credit card rate of 2 4 1 % in Oregon is approximately 29.58%. This is calculated using the formula APR = ( 1 + monthly rate ) 12 − 1 . Carrying a balance for a year would result in this effective annual interest rate.
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