Suppose Your Credit Card Issuer States That It Charges a 15.00

question 107

Multiple Choice

Suppose your credit card issuer states that it charges a 15.00% nominal annual rate.If you must make monthly payments,which amounts to monthly compounding,what is the effective annual rate?

• A)15.27%
• B)16.08%
• C)17.72%
• D)18.61%

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Definitions:

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