A credit card offers financing at an APR of 18 percent, with monthly compounding on outstanding charges.

Question:

A credit card offers financing at an APR of 18 percent, with monthly on outstanding charges. What is the effective annual rate (EAR)?
Compounding
Compounding is the process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time. This growth, calculated using exponential functions, occurs because the investment will...