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Is Paying Over Time a Smart Move?: Activity 2 of 3

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APR (annual percentage rate) means the amount of interest charged when a bill isn't paid in full.

Though APRs relate to annual fees, people pay them on a monthly basis, as 1/12 of the total APR.

Consider this example: A credit card company sends Carla a preapproved card with a 6.9% APR.

Carla did not pay last month's credit card bill. She will have to pay a penalty of 1/12 of her APR in her next bill. At what rate will the penalty be charged?
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