After Reading the Fine Print in Your Credit Card Agreement,you

question 72

Multiple Choice

After reading the fine print in your credit card agreement,you find that the "low" interest rate is actually an 18% APR,or 1.5% per month.What is the effective annual rate?

• A) 18.47%
• B) 19.56%
• C) 18.82%
• D) 19.41%

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Definitions:

Provision for Loss

An amount set aside in the accounting records to cover anticipated losses or liabilities.

U.S. GAAP

United States Generally Accepted Accounting Principles, a set of accounting standards for preparing financial statements that companies in the U.S. are required to follow.

IASB

The International Accounting Standards Board (IASB) is responsible for developing and promoting the use of International Financial Reporting Standards (IFRS).

IFRS Foundation

The IFRS Foundation oversees the International Accounting Standards Board (IASB), which establishes International Financial Reporting Standards (IFRS).