What is the effective annual rate for a credit card that has an annual percentage rate of 10.5 percent and charges interest monthly? Group of answer choices will be less than 10.5 percent. can either be less than or equal to 10.5 percent. is 10.5 percent. can either be greater than or equal to 10.5 percent. will be greater than 10.5 percen
Added by George A.
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The APR is the nominal interest rate, while the EAR takes into account the effects of compounding over the year. Show more…
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A credit card has an interest rate of 18% p.a. and charges interest monthly. The effective rate on this card is: Group of answer choices 11.96% p.a. 18% per month 12.18% p.a. 18% p.a. compounded annually 19.56% p.a.
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