3poils
kim's credit card has a 25% apr. find the periodic interest rate from june 3
to july 2. round your answer to two decimal places.
o
a. 2.12%
b. 2.30%
o c. 6.80%
o d. 2.05%
submit

The periodic interest rate from June 3  to July 2 will be 2.08%

Step-by-step explanation:

Given:

Annual percentage rate  = 25%

Time period  = June 3  to July 2

To Find:

Periodic interest rate  =?

Solution:

The periodic interest rate r is calculated using the following formula:

Where,

i = nominal annual rate

n = number of payments per year i.e., 12 for monthly payment, 1 for yearly payment and so on.

m = number of compounding periods per year

The period interest rate per payment is integral to the calculation of annuity instruments including loans and investments.

Now substituting the values we get

3 is greater then both of those numbers