Hans has an account in Grancore Bank and uses a credit card issued by the bank. He uses the credit card for various forms of transactions. In the context of credit card usage, when Hans has unpaid balances, Grancore Bank will charge him a(n) _____ on the due amount.
A) annual percentage rate
B) nominal interest rate
C) monthly surcharge rate
D) floating interest rate

Question

Quizplus · Accepted Answer

The annual percentage rate (APR) is the interest rate charged on unpaid credit card balances. It represents the yearly cost of borrowing and is applied to any unpaid balance after the due date.

Hans Has an Account in Grancore Bank and Uses a Credit