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:

Stereotyping

Forming oversimplified and generalized views about groups of people based on certain traits or characteristics.

Nursing Home

A facility providing residential care for elderly or disabled people, offering medical and personal care support.

Misattribution

The incorrect attribution of a cause or source to a particular feeling, event, or outcome.

Preschool Programs

Educational and developmental programs designed for children before they enter elementary school, focusing on basic skills and socialization.