A Credit Card Company Charges Its Customers an Annual Interest

question 110

Multiple Choice

A credit card company charges its customers an annual interest of 21.0% on the outstanding monthly balance.The effective annual rate for the customer will be:

• A) 21.00%.
• B) 21.20%.
• C) 23.14%.
• D) 37.93%.

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Definitions:

Barbiturates

A class of sedative and sleep-inducing drugs derived from barbituric acid, often used for their anxiolytic, hypnotic, and anticonvulsant properties.

Generalized Anxiety Disorder

A chronic disorder characterized by excessive, uncontrollable worry about a variety of topics, leading to significant distress or impairment in social, occupational, or other important areas of functioning.

Psychodynamic

Refers to a psychological approach that emphasizes systematic study of the psychological forces that underlie human behavior, feelings, and emotions and how they might relate to early experience.

Humanistic

A psychological perspective that emphasizes the study of the whole person and the uniqueness of each individual's experience.