Thursday, November 21, 2024

Scott Bilker
Household Math™: What is APR?
by Scott Bilker
 
Scott Bilker is the author of the best-selling books, Talk Your Way Out of Credit Card Debt, Credit Card and Debt Management, and How to be more Credit Card and Debt Smart. He's also the founder of DebtSmart.com. More about and DebtSmart can be found in the online media kit.

Test your knowledge by trying to solve this DebtSmart, Household Math™ problem! After you complete the problem, you’ll get the solution and explanation.
 
1. Actually, it’s the abbreviation for Annual Percentage Rate. The APR is quite simply the periodic rate multiplied by the number of periods in a year. For example, if the monthly rate of interest is 2 percent, then the APR is 24 percent because 2 (the periodic rate) multiplied by 12 (the number of periods, or months, in a year) equals 24 percent. Okay, so now that you understand the APR, here is the question: What is the daily rate (one day is the period) if the APR is 14.6 percent?
0.04 percent
1.22 percent
2.44 percent
I don't know!



Copyright ©2024 Press One Publishing. All rights reserved. Use or purchase of any material at DebtSmart.com including but not limited to books, articles, and software is subject to the following  disclaimer/warning.