A credit card advertises an annual interest rate of 23%.
What is the equivalent monthly interest rate
If 23% is compounded monthly, then the monthly rate is:
23 / 12 =1.91667%.
If 23% is the effective annual rate(or compounded annually), then the monthly rate is:
[1 + 23%]^(1/12) =1.23^(1/12) =1.0174 - 1 x 100 =1.74%