Question

Most credit cards calculate interest based on a daily periodic rate. If the APR is 16.99%, calculate the daily periodic rate. There are 365 days in one year. Round your percentage to the nearest hundredth of a percent

Answer 1

To find the daily periodic rate, we just have to divide the APR by the number of days.

$\frac{16.99}{365}=0.0465\approx0.05$

Therefore, the daily periodic rate is 0.05%, rounded to the nearest hundred.