American Express and Other Credit Card Issuers Must by Law

question 3

Multiple Choice

American Express and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements.If the APR is stated to be 18.00%, with interest paid monthly, what is the card's EFF%?

• A) 18.58%
• B) 19.56%
• C) 20.54%
• D) 21.57%
• E) 22.65%

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders; it has rights and liabilities independent of them and can enter into contracts, sue, and be sued.

Intrastate Business

Business activities that are conducted within the same state and are not involved in trade or commerce across state borders.

Foreign Business

A company that operates in a country different from the one where it was established, often involving international transactions or expansions.

Fine

A fine is a monetary penalty imposed by a court or regulatory agency as punishment for an offense or regulation violation.