convert the following credit card rate to the APR. nebraska, 0.03562% daily rate? Round to the nearest whole number
APR = 0.03562%/day * 365day/yr = 13.00%
To convert the daily rate to the Annual Percentage Rate (APR), follow these steps:
Step 1: Convert the daily rate to a monthly rate by multiplying it by 30 (assuming an average of 30 days in a month):
0.03562% × 30 = 1.0686%
Step 2: Convert the monthly rate to an annual rate by multiplying it by 12 (assuming 12 months in a year):
1.0686% × 12 = 12.8232%
Step 3: Round the annual rate to the nearest whole number:
12.8232% ≈ 13%
Therefore, the Annual Percentage Rate (APR) for the given credit card rate in Nebraska is approximately 13%.
To convert the daily credit card rate to the Annual Percentage Rate (APR), we need to use the following formula:
APR = (1 + daily rate)^365 - 1
Let's calculate it step by step.
First, convert the daily rate from a percentage to a decimal by dividing it by 100:
0.03562% = 0.0003562
Next, add 1 to the decimal rate:
1 + 0.0003562 = 1.0003562
Now, raise this sum to the power of 365 (the number of days in a year):
(1.0003562)^365 = 1.142141346
Next, subtract 1 from the result:
1.142141346 - 1 = 0.142141346
Finally, multiply the decimal result by 100 to obtain the APR as a percentage:
0.142141346 * 100 = 14.21
To round the APR to the nearest whole number, round 14.21 to 14.
Therefore, the APR for the given credit card rate of 0.03562% daily in Nebraska is approximately 14%.