It is now three months later and Monty has missed two payments in a row and he is now paying the default or penalty rate on his balance.How much interest per month will Monty be accruing on his unpaid balance?
A)18%
B)1.5%
C)36%
D)3%

Question

Quizplus · Accepted Answer

The penalty rate is typically expressed as an annual percentage rate (APR). If the penalty rate is 36% APR, then the monthly interest rate would be 36% divided by 12 months, which equals 3% per month.

It Is Now Three Months Later and Monty Has Missed