Your credit card company charges you 1.40 percent per month. What is the EAR on your...

Question

Question

Your credit card company charges you 1.40 percent per month. What is the EAR on your credit card?

business finance

Answer 1

✔ Recommended Answer

Answer #1

EAR=[(1+APR/m)^m]-1
where m=compounding periods

=[(1+0.014)^12]-1

which is equal to

=18.16%(Approx).

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Answer 2

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