Question

Jared's average daily balance for last month was $560. The finance charge was $8.12.
a. What was the monthly percentage rate?
b. What was the APR?

Answer 1

For part a), you'll divide the finance charge over the average daily balance. Tell me what you get when you do so.

Answer 2

ok

Answer 3

\(\color{#0cbb34}{\text{Originally Posted by}}\) @jimthompson5910
For part a), you'll divide the finance charge over the average daily balance. Tell me what you get when you do so.
\(\color{#0cbb34}{\text{End of Quote}}\)
1.45%

Answer 4

1.45% is the correct answer for part a)

Answer 5

Multiply that with 12 to get the APR
APR = annual percentage rate
APR = 12*(monthly percentage rate)

Answer 6

\(\color{#0cbb34}{\text{Originally Posted by}}\) @jimthompson5910
Multiply that with 12 to get the APR
APR = annual percentage rate
APR = 12*(monthly percentage rate)
\(\color{#0cbb34}{\text{End of Quote}}\)
i got 17.4%

Answer 7

17.4% APR is correct

Answer 8

\(\color{#0cbb34}{\text{Originally Posted by}}\) @jimthompson5910
17.4% APR is correct
\(\color{#0cbb34}{\text{End of Quote}}\)
thank you

Answer 9

You're welcome