Question

Michelle has a credit card that charges 1.5% per month. What is the effective rate that the credit card company is charging?

(Please show me the steps how to solve this question, thank you)

Answer 1

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PV, FV, ANNUITY (Autosaved) - Microsoft Excel (Product Activation Failed) Review View Add-Ins - 2x = = Dr General Wrap Text Merge & Center - m Find & $ % , :.: Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Σ AutoSum : A Fill 2 Sort & 2 Clear Filter Editing Select Alignment Number Cells File Home Insert Page Layout Formulas Data % Cut Calibri 11AA = Ea Copy Paste Format Painter BI U D- DA Clipboard Font EK80 fax EG EH EI 66 67 68 69 EJEK K | ELEMENT EOEP credit card MONTHLY RATE 1.50% 70 EAR = (1+(r/m))^m - 1 r/m = MONTHLY RATE = 1.50% 71 72 73 74 m = 12 75 76 77 EAR = EAR = EAR = (1+0.015))^12-1 0.195618171 19.56% ANSWER 78 79 80 81 82 83 84 H N CAP STRU VALUE profit margin symbols LOCK BOX DILUTION DOLLAR COST AVG MORTGAGE LOAN OPTIONSpv, fv, annuity ferences EXPONPER APR CPI ear FVA pva Shel BOU 130% Rea 1 - O _ + 02:03 13-08-2019 DEB . * ENG