Question

You have a credit card that has a 30% yearly interest rate. What percentage is the monthly interest rate? Express your answer as a decimal. Do not round your answer.(1 point)

Answer 1

To find the monthly interest rate from an annual interest rate, you can divide the yearly interest rate by 12 (the number of months in a year).

Given an annual interest rate of 30%, you can express that as a decimal:

30% = 0.30

Now, divide by 12 to get the monthly interest rate:

\[
\text{Monthly Interest Rate} = \frac{0.30}{12} = 0.025
\]

Therefore, the monthly interest rate, expressed as a decimal, is **0.025**.