Answer to Question #254707 in Financial Math for sevyn dixon

Question

You decided to purchase a to P50,000 LED TV through a credit card. After a

month, you discovered from your statement that you were charge with to

P1,000.00 interest. How much was the monthly interest rate applied to your

credit card purchase?​

Answer 1

The monthly interest rate applied to your credit card purchase is:

1,000/50,000×100% = 2% per month or 2×12 = 24% yearly rate compounded monthly.