Acredit card issuer charges an apr of 19.66%, and its billing cycle is 30 days
long. what is its periodic interest rate?
o
a. 21.72%
ob. 1.62%
o c. 21.53%
o d. 1.22%
submit

The periodic interest rate is 1.62 %

Step-by-step explanation:

Given:

Annual percentage rate  = 19.66%

Time period  = 30 days

To Find:

Periodic interest rate  =?

Solution:

The periodic interest rate r is calculated using the following formula:

r = (1 + \frac{i}{m})^{\frac{m}{n}} - 1

Where,

i = nominal annual rate

n = number of payments per year i.e., 12 for monthly payment, 1 for yearly payment and so on.

m = number of compounding periods per year

The period interest rate per payment is integral to the calculation of annuity instruments including loans and investments.

Now substituting the values we get

r = (1 +1.638 ) - 1

r = (2.638 ) - 1

r = 1.638 %

i dont know

step-by-step explanation: