Question

If the apr on a credit card is 22.2% what is the monthly interest rate

Answer 1

The monthly interest rate for a credit care that has an APR 22.2 pct rate is calculated on the balance of the credit card. There is no standard monthly interest rate given.

Answer 2

Solution:

APR =Annual Percentage rate

It is the amount of money charged as interest on a sum that you borrow from bank.The interest can be paid monthly or annualy. If you pay the balance at the end of each month that you have borrowed from credit card ,there is no need to pay interest.To find the monthly interest rate , we just divide the value of APR by 12 .

As Yearly interest rate i.e APR on credit card = 22 .2 %

Then , Monthly interest rate = $\frac{22.2}{12}= 1.85$%