Answer:
The APR is approximately 17.23 %.
Step-by-step explanation:
Since, the APR is,
[tex]r=(1+\frac{i}{n})^n-1[/tex]
Where, i is the nominal rate,
n is the number of periods,
Since, For a credit card, n = 12,
Here, i = 16 % = 0.16,
Thus, the APR would be,
[tex]r=(1+\frac{0.16}{12})^{12}-1[/tex]
[tex]=0.172270798259[/tex]
[tex]=17.2270798259\%[/tex]
[tex]\approx 17.23\%[/tex]
