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:

Floating Rate System

A currency exchange system where the value of a currency is allowed to fluctuate according to the foreign exchange market.

International Treaty

An agreement under international law entered into by countries in written form and governed by international law.

International Monetary Fund

An international organization that aims to promote global economic stability and growth through financial assistance and advice.

Japanese Yen

The official currency of Japan, often used in international finance as one of the major traded currencies.