Description of this paper

You have a credit card with a monthly rate of appr...

Description

Solution


Question

You have a credit card with a monthly rate of approximately 2.5%. It compounds monthly so at the end of a 12-month period, what is the effective annual interest rate on the card? [Hint: 1 + effective annual rate = (1+ annual rate/12)t]

 

Paper#3853 | Written in 18-Jul-2015

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