Amocmet 3 pts I Question 33 and company charges 1.5% /month for unpaid balance then the...

Question

Question

Answer 1

Answer #1

Interest rate per month = 1.5%

Annual effective rate = ((1+1.5%)^12)-1

Annual effective rate = 19.56%

So, effective rate of interest per month = 19.56%/12 = 1.63%

Here the nearest answer to 1.63% is 1.625%

Hence the answer is 1.625%

Answer 2

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