As a College Student, You Probably Receive Many Credit Card

question 92

Multiple Choice

As a college student, you probably receive many credit card offers in the mail. Consider these two offers. The first card charges a 17 percent APR. An examination of the footnotes reveals that this card compounds monthly. The second credit card charges 16.25 percent APR and compounds weekly. What is the effective annual rate of the cheaper card?

• A) 17.00 percent
• B) 17.62 percent
• C) 16.25 percent
• D) 18.39 percent

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Definitions:

West Africa

A region of Africa that includes countries along the Atlantic coast and some inland areas, known for its diverse cultures, histories, and economies.

Sierra Leone

A country on the southwest coast of West Africa, known for its rich history and natural resources but also for its challenges including civil war and health crises.

Ebola Cases

Instances of individuals diagnosed with Ebola virus disease, a severe and often deadly illness.

Standardized Mortality Rate

A mortality rate adjusted for certain factors such as age to allow comparisons between different populations or over time.