The Average Annual Percentage Rate (APR) for Credit Cards Held

question 55

Short Answer

The average annual percentage rate (APR) for credit cards held by U.S. consumers is approximately 15 percent ("Ouch - Credit Card APR Now Tops 15 Percent," Time, January 3, 2012). Suppose the APR for new credit card offers is normally distributed with a mean of 15% and a standard deviation of 4%. What APR must a credit card charge to be in the bottom 10% of all cards?

---

Definitions:

Great Awakening

A series of religious revivals in the American colonies during the 18th century, emphasizing emotional involvement in religious matters.

James Oglethorpe

A British general, member of parliament, philanthropist, and founder of the colony of Georgia in the 18th century, known for his progressive views on prison reform and establishment of a free colony.

Enlightenment Ideals

A set of 18th-century philosophical principles emphasizing reason, individualism, and skepticism towards traditional societal structures.

Benjamin Franklin

One of the Founding Fathers of the United States, known for his contributions as an inventor, writer, statesman, and diplomat.