Answer:
APR for the given given credit rate of 14% is 14.9%
Step-by-step explanation:
Rate of Credit = 14%
Time = 1 year = 12 months
The Annual Principal Rate or APR is calculated by using the formula :
[tex]APR = [(1-\frac{Rate}{12\times 100})^{Time}-1]\times 100\\\\APR =[ (1 - \frac{14}{1200})^{12}-1]\times 100\\\\APR = [1.1493-1]\times 100\\\\\implies\bf APR=14.93\%[/tex]
Hence, APR for the given given credit rate of 14% is 14.9%
