Question: Section 2: Interest Rates (20 points) a) You have been offered a credit card by a company that charges interest at a rate of 3.0%

Section 2: Interest Rates (20 points) a) You have been offered a credit card by a company that charges interest at a rate of 3.0% compounded monthly. Payments on outstanding balances are due on a monthly basis. What is the effective annual interest rate that this company charges? b) What is the effective daily interest rate if the same company above revised the interest rate to 3.0% compounded daily, and the card still required monthly payments

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