Convert the following credit card rate to the APR. Nebraska, 0.04110% daily rate. (Round your answer to the nearest whole number.)

Answer 1

let the annual rate be i

1+i = 1.000411^365
1+i = 1.1618
i = .1618 = 16.18% or 16% to the nearest percent

Answer 2

The difference in our two answers is explained this way:

my answer of 16.18 % is the effective annual rate compounded once annually

Ms Sue's rate of 15% is the annual rate compounded daily.

Notice the significant difference in the stated rate.
Although both answers are correct, it shows how important it is for credit companies to state their rate of compounding

Answer 3

Thanks, Reiny. I got deleted my answer when I saw that you posted a different answer.

Answer 4

Louis:
Ms Sue's answer was 15% , obtained by
taking 365(.0411) = 15.0015

Ms Sue: your answer is also correct, depending on the interpretation of the wording of the question.

Answer 5

Thanks. Now I need to work on my English, judging from my botched post above. <g>