If You Credit Card APR Is 20% Compounded Monthly and You

question 105

Multiple Choice

If you credit card APR is 20% compounded monthly and you carry a balance your effective rate will be

• A)22.74%.
• B)21.25%.
• C)24.27%.
• D)21.94%.

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Definitions:

Capital

Resources made and used to produce and distribute goods and services; examples include machinery, buildings, and tools.

Firms

Business organizations that produce goods or services, often to make a profit.

Tariffs

Taxes imposed on imported goods, often to protect domestic industries or to raise government revenue.

Subsidizing Exports

Financial support provided by governments to domestic companies to lower their production costs and make their exports more competitive on the global market.