10. You have been offered a credit card with an interest rate of 15% APR compounded...

Question

Question

10. You have been offered a credit card with an interest rate of 15% APR compounded monthly. This is equivalent to an effecti

business finance

Answer 1

Answer #1

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

=[(1+0.15/12)^12]-1

which is equal to

=16.08%(Approx)

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Answer 2

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