Answer: 2.67%
Explanation:
Periodic interest rate refers to the Annual Percentage Rate (APR) converted to the periods in question. It is calculated by dividing the APR by the number of periods it is to be converted to.
If for instance a monthly periodic rate is needed, divide APR by 12 as there are 12 months in a year.
If it is a daily periodic rate needed, divide the APR by 365 as that is the number of days in a year.
This question is asking for a monthly periodic interest rate:
= 31.99% / 12
= 0.026658
= 2.67%
