Question

- 200 points MC Qu. 91 Sporting Goods charges.85 percent interest... Sporting Goods charges 35 percent interest per month. What rate of interest are its credit customers actually paying? 11.92 percent 1069 percent 10.26 percent 9.31 percent 1100 percent References Multiple Choice MC Qu. 91 Sporting Goods charges 85 percent interest

Answer 1

b.10.69%.

annualized rate of return = (1+ monthly rate)^12 -1

here,

monthly rate = 0.85%

=>0.0085.

=>(1.0085)^12-1

=>0.10690623

=>10.69%...(rounded to two decimals)