At a rate of 6.5%, what is the future value of the following cash flow stream? The cash flows for years 0, 1, 2, 3 and 4 are $0, $75, $225, $0, and $300, respectively.

You check your credit card balance, and notice that the interest rate is quoted as 20.8% APR. You also know that interest is compounded monthly. What is the Effective Annual Rate on your credit card?

Answer rating: 100% (QA)

1 To calculate the future value of the given cash flow stream we can use the formula fo... View the full answer