To calculate the periodic rate of a credit card, use the following formula:
? $$\text { Periodic Rate } = \frac { \text { average interest rate } } { \text { annual percentage rate } }$$ ?

Question

Quizplus · Accepted Answer

The correct formula for calculating the periodic rate of a credit card is to divide the annual percentage rate (APR) by the number of billing periods in a year, not to divide the average interest rate by the APR.

To Calculate the Periodic Rate of a Credit Card, Use Periodic Rate = average interest rate annual percentage rate \text { Periodic Rate } = \frac { \text { average interest rate } } { \text { annual percentage rate } } Periodic Rate = annual percentage rate average interest rate ​

To Calculate the Periodic Rate of a Credit Card, Use $\text { Periodic Rate } = \frac { \text { average interest rate } } { \text { annual percentage rate } }$