Question: EAR and APR ( 5 points ) 1 . Exercise 1 : Calculating EAR. A credit card company advertises an interest rate of 1 8

EAR and APR (5 points)
1. Exercise 1: Calculating EAR.
A credit card company advertises an interest rate of 18% AP R, compounded monthly.
What is the Effective Annual Rate (EAR)?

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