Two credit cards both state an APR of 15%. First National Bank's card charges 1.25% compounded monthly. First United Bank's card charges 7.5% compounded semiannually (twice a year). Given these APR's, what are the effective annual rates charged by these two credit cards?

Answer rating: 100% (QA)

To calculate the effective annual rate EAR for each credit card we can use the ... View the full answer