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If you have a credit card that specifies interest as being calculated at a rate of...

If you have a credit card that specifies interest as being calculated at a rate of 0.05% daily, compounded daily, with monthly payments, what is the APR for the credit card?

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Answer #1

APR is short for Annual Percentage rate, which is the interest you're charged over a 12- month period.

APR is calculated by the following formula

APR/365=DPR (Daily Periodic Rate)

APR/365=0.05

APR=365*0.05

APR=18.25%

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