13]
EAR = (1 + (APR/n))^{n} - 1,
where n is the number of compounding periods in a year. In this case, n = 4 since there are 4 quarters in a year.
20% = (1 + (APR/4))^{4} - 1
APR = ((1 + 20%)^{1/4} - 1) * 4
APR = 18.65%
E. $24.20 Fou are paying an effective annual rate of 20 percent on your credit card....
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