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Leno4ka [110]
3 years ago
12

Merle has an offer from a credit card issuer for a 0% APR for the first 60 days and a 23.19% APR afterwards, compounded daily. W

hat effective interest rate is Merle being offered?
A.26.09%
B.23.19%
C.21.38%
D.25.82%
since no one can help me when i put 10 points, lets see yall help now gold diggers -_-
Mathematics
2 answers:
Andreyy893 years ago
8 0

To find the rate add 1 to the annual rate divided by 365 days raised to the number of days left in the year minus 1.

 r= (1 + 0.2319/365)^305 - 1

r = 0.2138

Now multiply by 100 for the percent:

0.2138 x 100  = 21.38% 

Ira Lisetskai [31]3 years ago
6 0

Answer: C: 21.38%

Step-by-step explanation:

Step-by-step explanation: Knowing the apr was 0 for the first 60 days, and 23.19% for the rest of the days, the equation we need to do is:

R = (1 + r/(365) )^(D) - 1

Where R is the apr (in decimal form), we have 0 for the first 60 days, and 0.2319 for the other 305 days.

D is the number of days that is applied, so we have two parts:

R = (( 1 + 0/365)^60 - 1 ) + ((1 + 0.2319/365)^305 - 1) = 0.21375

That can be rounded up to 0.2138.

Now, we multiply this number by 100% and we get 21.38%

so the right answer is C.

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More can be learned about the z-distribution at brainly.com/question/25890103

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