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Hi John,
I just did the mock exam, as question I faced was to work out the APR of 1.5% per month for a credit card company. The answer is;
(1+0.015) 12- 1 = 0.1956 =19.56%.
On my calculator I cannot seem to get this answer when I try. Is there a specific order that I need to work this out in? (The 12-1 part I do using the squared button which I fill in with 12-1)
Thank you.
SuzanneIt is ((1 + 0.015)^12) – 1
I assume that you have a scientific calculator in which case you will have a button marked x^y.
So it is 1.015 “x^y” 12 “=” “-” 1
Lovely thank you! The answer in the mock exam confused me as all the font was the same size. Thanks 🙂
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