Answer:
The monthly percentage rate would be 1.6%
Step-by-step explanation:
Given,
Finance charge = $ 85.50,
Amount of bill in this month = $ 5,343.75,
Hence, the monthly rate of percentage
[tex]=\frac{\text{Finance charge}}{\text{Amount of bill}}\times 100[/tex]
[tex]=\frac{85.5}{5343.75}\times 100[/tex]
[tex]=\frac{8550}{5343.75}[/tex]
[tex]=\frac{855000}{534375}[/tex]
= 1.6 %
i.e. OPTION A would be correct.
