The Effective Annual Rate for a Credit Card That Charges

question 37

Multiple Choice

The effective annual rate for a credit card that charges a 19.9% APR compounded daily is closest to:

• A)18.15%
• B)19.9%
• C)22.0%
• D)24.2%

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Definitions:

Venezuela

A country located in South America, known for its significant oil reserves, diverse environments, and recent political and economic challenges.

Trade-off

The compromise between two conflicting desires or choices, where achieving more of one thing requires giving up something else in return.

Peanuts

Often used informally to refer to a very small or insignificant amount of money.

Cashews

A type of nut known for its rich flavor and health benefits, often used in cooking and snacking.