A Credit Card Company Wishes to Reduce Its Effective Interest

question 124

Multiple Choice

A credit card company wishes to reduce its effective interest rate by 4%. It currently charges a periodic rate of 1.75% per month. Determine by what amount the company should it set its new monthly periodic rate.

• A) 1.17%
• B) 1.27%
• C) 1.37%
• D) 1.47%
• E) 1.57%

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