To calculate the monthly interest rate from an annual interest rate, you can use a simple formula. The annual interest rate is divided by 12, which represents the 12 months in a year.
In Cameron’s case, with an annual interest rate of 21%, the calculation would look like this:
Monthly Interest Rate = Annual Interest Rate / 12
So, plugging in Cameron’s rate:
Monthly Interest Rate = 21% / 12
This gives us:
Monthly Interest Rate = 1.75%
To recap, Cameron’s monthly interest rate on his credit card would be 1.75%.