Given:
The APR is 18.99%
Find-:
What is the periodic interest rate for an account that is billed monthly?
Explanation-:
The APR is calculated by dividing the APR by the number of periods it is to be converted to.
If, for instance, a monthly periodic rate is needed, divide APR by 12 as there are 12 months in a year.
So, the billed monthly are:
[tex]\begin{gathered} =\frac{APR}{12} \\ \\ =\frac{18.99\%}{12} \\ \\ =1.5825 \\ \\ \approx1.58\% \end{gathered}[/tex]The monthly bill is 1.58%
