Question

Susan uses a credit card with an APR of 22.2%. What is the monthly percentage rate on the card? A. 1.255% B. 1.85% C. 2.22% D. 22.2%

Answer 1

Answer:

B. 1.85%

Step-by-step explanation:

The APR is the annual interest rate that the bank charges. So, to calculate the monthly percentage rate, you have to divide the APR by 12 that is the number of months in a year:

APR= 22.2%

Monthly percentage rate= 22.2%/12= 1.85%

According to this, the answer is that the monthly percentage rate on the card is 1.85%.