To Calculate the Periodic Rate of a Credit Card, Use $$\text { Periodic Rate } = \frac { \text { average interest rate } } { \text { annual percentage rate } }$$

question 47

True/False

To calculate the periodic rate of a credit card, use the following formula:
? $$\text { Periodic Rate } = \frac { \text { average interest rate } } { \text { annual percentage rate } }$$ ?

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Definitions:

Poisson Approximation

A methodology in statistics used to approximate the probability of a given number of events happening in a fixed interval of time or space.

Probability

The measure of likelihood that an event will occur, expressed as a number between 0 and 1.

Random Variable

A variable whose values depend on outcomes of a random phenomenon. It can be discrete or continuous.

Standard Deviation

A metric that quantifies the spread or variation of a dataset in comparison to its average value.