Gretchen just got a new credit card that offers an introductory apr of 4.8% for the first 4 months and a standard apr of 15.6% thereafter. if interest is compounded monthly, what is the periodic interest rate during the first 4 months?
a. 0.4%
b. 0.3%
c. 1.2%
d. 1.6%

We have this formula APR = (Periodic Rate) × (Number of Periods) to get the APR and since it's annual, the number of periods is 12. The question asked about the periodic rate for the first 4 months so relatively, 15.6 is not included in our solution.

We then substitute the known values to the equation to get 

4.8 = (Periodic Rate) × (12)
Periodic Rate then is 0.4 which the answer is letter A: 0.4%. 

16 minutes is correct