Question

If your credit card has an APR of 13.7 and the interest is compounded weekly with monthly payments, what is the effectlive monthly interest rate (in %)?

Answer #1

Hello

APR is Annual Percentage rate i.e. 13.7%

Effective rate of interest is calculated with the help of this formula

r= (1+i/n)^n-1

Where

r = Effective rate of interest

i= Annual percentage rate - given

n = the number of compounding period per year

So in our example their will be 52 periods because we have 52 weeks in a year

By putting given input

r= (1+.137/52)^52-1

= (1.002634615384615)^52-1

= 1.146622-1

= .146622/52 or 14.66%/52 rate of interest weekly i.e 0.281965385

and for monthly rate of interest

= 14.18%

Thanks

You have a credit card with an APR of 16%, compounded monthly,
that has a balance of $7,000. You want to transfer this balance to
a different card with an APR of 14.5%, compounded monthly. Assuming
that you will make the minimum payments of $150 per month for
either card, what transfer fee would make you ambivalent
between transferring or not?
PV=
FV=
PMT=
N=
I/Y=

Your credit card charges an APR of 29% on your balance. Interest
is compounded on a daily basis, 365 days a year. If you made the
minimum payment of $150 per month on your credit card balance, how
long will it take you to pay off a $5,000 balance?
Multiple Choice
6.61 years
35.73 years
2.98 years
5.82 years
9.56 yearsYour credit card charges an APR of 29% on your balance.
Interest is compounded on a daily basis, 365 days...

You just received a credit card offer in the mail. The credit
card has an APR of 20.65%, with the interest being calculated and
charged on a monthly basis. What is the APY on this credit card?
(Round answers to 2 decimal places, e.g.
52.75.)
The equivalent APY is

1) Your credit card balance is $1,000 now with 14 percent APR
compounded monthly. Your minimum payment is $20. If you don’t use
your credit card and continue paying the minimum, approximately,
how long will it take to pay off the balance?
6.29 yrs
8 yrs
5.21 yrs
7 yrs
2) OZ Inc. has a bond issue outstanding with a $1,000 par value
and a maturity of 15 years. The annual coupon rate is 10.0% with
semi-annual coupon payments. The...

You spent $2,013 on Christmas gifts and put the purchases on
your credit card. Your credit card has a 14.57% APR compounded
monthly. If you want to pay off your credit card balance in 24
months, the first payment next month, how big are the monthly
payments? Calculate your answer to two decimal places (e.g.
55.93)

You spent $2,588 on Christmas gifts and put the purchases on
your credit card. Your credit
card has a 16.84% APR compounded monthly. If you want to pay off
your credit card balance
in 15 months, the first payment next month, how big are the
monthly payments?
Calculate your answer to two decimal places (e.g. 55.93)

Credit cards vary greatly in the interest rate charged. Typical
APR rates are close to 17%, and monthly minimum payments are
usually computed using a 10-year repayment period. Jimbob wants to
pay it over 5 years. So, the interest rate on Jimbob’s credit card
is 12% compounded monthly. The total credit card payment was
originally $20,000. How much will Jimbob end up paying?

You owe $10,000 on a credit card with an interest rate of 15%,
which is compounded monthly. If you make payments of $1,000 per
month, how many months will it take you to pay off your debt?
(Enter the answer to 2 decimal places)

Your credit card has a balance of $4700 and an annual interest
rate of 17%. With no further purchases charged to the card and the
balance being paid off over four years, the monthly payment is
$136, and the total interest paid is $1828. You can get a bank
loan at 9.5% with a term of five years. Complete parts (a) and
(b) below.
a. How much will you pay each month? How does this compare with
the credit-card payment...

What is the APR? Credit cards often advertise
the monthly interest rate rather than the APR. Use this example to
explain why they do so: Suppose a credit card company advertises an
interest rate of 3% per month. What is the APR for this card? Which
sounds more appealing, the monthly rate or the APR?

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 8 minutes ago

asked 22 minutes ago

asked 45 minutes ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 3 hours ago

asked 4 hours ago

asked 4 hours ago

asked 4 hours ago

asked 4 hours ago