You check your credit card balance, and notice that the interest rate is quoted as 20.6% APR.

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You check your credit card balance, and notice that the interest rate is quoted as 20.6% APR. You also know that interest is compounded monthly. What is the Effective Annual Rate on your credit card?

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Personal Finance

ISBN: 978-0134724713

4th Canadian edition

Authors: Jeff Madura, Hardeep Singh Gill

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Posted Date: Apr 23, 2024 01:31 AM

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You check your credit card balance, and notice that the interest rate is quoted as 20.6% APR.

Question:

Expert Answer:

To calculate the Effective Annual Rate EAR on your credit card you can use the formula for compoun... View the full answer

Personal Finance

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