The actual effective rate of interest/year will be most nearly 9.55%
A credit card is a kind of credit facility, furnished by banks that allow clients to borrow funds inside a pre-approved credit restriction. It enables customers to make buy transactions on goods and offerings.
credit cards will probably be the very best cards to get for those with either bad credit scores or no credit scores. it really is because they require collateral prematurely within the form of a security deposit, that's commonly equal to the quantity of your credit line and reduces the chance to the card company in case you fail to pay your bill.
Amount = Principal * ( 1 + r ) ^ number of periods
Amount = 600
Principal = 500
Number of years 2
$ 600 = $ 500 * ( 1 + r ) ^2
$ 600 / $ 500 = ( 1 + r ) ^2
1.2 ( 1 + r ) ^ 2
sqrt of 1.2 = 1 + r
1.095445115 1 + r
9.55% r
r = 9.55%
Disclaimer:- The correct format of the question is given below.
A credit card company will charge you 2.5% of interest/month for the unpaid balance. the actual effective rate of interest/year will be most nearly:_____.
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