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:

Corpus Luteum

A temporary endocrine structure in female ovaries that is involved in the production of progesterone during the menstrual cycle and early pregnancy.

Vesicular Follicle

A fluid-filled structure in the ovary that contains a maturing ovum or egg.

Interstitial Cell

Cells located in the spaces between the organs or tissues of the body, often referring to cells in the testes that produce testosterone or in various other tissues for support and repair.

Spermatogonium

A male germ cell from which sperm cells are derived, undergoing several stages of division before becoming mature sperm.