Your Credit Card Has a Quoted Rate of 18

question 5

Multiple Choice

Your credit card has a quoted rate of 18.5 percent compounded daily.What is the effective annual rate? (Assume 360 days a year.)

• A) 66.60%
• B) 20.32%
• C) 51.39%
• D) 18.50%

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Definitions:

Market Supply Curve

A graphical representation showing the quantity of a good that sellers are willing and able to sell at different prices.

Labor

The human effort, both physical and mental, used in the production of goods and services.

Wage Rates

The standard amount of pay given for work performed, typically expressed as an hourly rate or salary.

Productivity of Labor

A measure of economic performance that calculates the output of goods and services per unit of labor input.