Acredit card advertises an annual interest rate of 23%. what is the equivalent monthly interest rate?

1.74 %

Step-by-step explanation:

the equivalent monthly interest rate of a credit card with an annual interest rate of 23% is 1.74 %.

Hope this helps!

1.74 %

If 23% is compounded each month, there will be 12 intervals and then the monthly rate is: 23 ÷ 12 = 1.92 %

If 23% is compounded annually, then the monthly rate would be:

Rate = (1 + 23%)⁰°⁸³³ (power is 0.833 or 1/12)

= 1.23⁰°⁸³³ (power is 0.833 or 1/12)

= 1.0174 - 1 x 100

= 1.74 %

1.74%

Step-by-step explanation:

What is the equivalent monthly interest rate?

If 23% is compounded each month, there will be 12 intervals and then the monthly rate is:

23 ÷ 12 = 1.92 %

If 23% is compounded annually, then the monthly rate would be:

Rate = (1 + 23%)⁰°⁸³³ (power is 0.833 or 1/12)

= 1.23⁰°⁸³³ (power is 0.833 or 1/12)

= 1.0174 - 1 x 100

= 1.74 %

23/12 = 1.916666667

1.916% or approx 1.92%

Step-by-step explanation:

A credit card advertises an annual interest rate of 23%.

Annual rate of interest means rate of interest offered for 12 months.

So, if you have to calculate the monthly rates, you can divide the given rate by 12.

So, monthly rate is = % ≈ 1.92%

The equivalent monthly interest rate would be 1.92% (approx)

Step-by-step explanation:

Given,

The annual interest rate = 23 %,

Since, 1 year = 12 month,

Thus, the monthly interest rate =

Hence,  the equivalent monthly interest rate would be 1.92% (approx)

What is the equivalent monthly interest rate?

If 23% is compounded each month, there will be 12 intervals and then the monthly rate is:

23 ÷ 12 = 1.92 %

If 23% is compounded annually, then the monthly rate would be:

Rate = (1 + 23%)⁰°⁸³³ (power is 0.833 or 1/12)

= 1.23⁰°⁸³³ (power is 0.833 or 1/12)

= 1.0174 - 1 x 100

= 1.74 %