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. asked in Business & FinancePersonal Finance · 7 years ago

Finance Question: Your credit card company charges you 1.65 percent interest per month.?

Your credit card company charges you 1.65 percent interest per month. What is the annual percentage rate on your account?

21.25 percent

18.95 percent

20.90 percent

21.70 percent <---- it's not this one

19.80 percent

Thank you!

1 Answer

Relevance
  • 7 years ago

    21.70 would be the effective rate, assuming the interest compounds monthly.

    But the stated rate is just 1.65% * 12.

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