4 years ago

PLEASE SOLVE IT STEP BY STEP

Mathematics

1 answer:

GenaCL600 [577]4 years ago

3 0

Rise over run is the formula so y=2/3

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A credit card had an APR of 15.98% all of last year, and compounded interest daily. What was the credit card's effective interes

zimovet [89]

Answer:

Option(B) is the correct answer to the given question.

Step by Step Explanation

We know that

$A\ =\ P \ *(\ 1+\ \frac{r}{n} \ ) ^{nt}$

Here A=amount

r=15.98%=0.1598

n=365

t=1

Putting these values into the equation

$A\ =\ P \ *(\ 1+\ \frac{0.1598}{365} \ ) ^{365}$

$A\ =\ P \ *(\ 1+\ 0.000437) ^\ { 365}$

$A\ =\ P \ *(\ 1.000437 ) ^{365}$

$A\ =1.17288 P$

Now we find the interest

I= $1.17288P\ -P\\=\ 0.17288P\\\ ~ 0.1720P$

Therefore effective interest rate of the last year can be determined by

$\frac{0.1720P}{P}$

=0.1720 *100

=17.20%

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3 years ago

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