Your Credit Card Has an Annual Percentage Rate of 18

question 75

Multiple Choice

Your credit card has an annual percentage rate of 18.9 percent and compounds interest daily.What is the effective annual rate?

• A) 19.47 percent
• B) 19.58 percent
• C) 19.82 percent
• D) 19.94 percent
• E) 20.80 percent

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Definitions:

Variable Cost

A cost that varies with the level of output or production, such as materials or labor costs.

Fixed Cost

A cost that does not change with the level of production or sales over a certain period, such as rent or salaries.

Plane Operating Costs

The expenses associated with operating an aircraft, including fuel, maintenance, crew, and landing fees.

Variable Cost

A cost that changes in proportion with the level of output or activity.