What Is the Effective Annual Cost of a Credit Card

question 6

Multiple Choice

What is the effective annual cost of a credit card that charges 18%, compounded monthly?

• A) 16.63%
• B) 18.00%
• C) 18.81%
• D) 19.56%
• E) 19.61%

---

Definitions:

Organized Beliefs

A set of systematically arranged convictions or doctrines, often forming the basis of a political, moral, or philosophical stand.

Higher Power

A spiritual entity or force believed to be greater than oneself, often a central concept in various religious and spiritual practices.

Multidimensional Concept

An idea or theory that includes multiple aspects or factors, recognizing complexity and varied dimensions.

Prefrontal Cortex

A region of the brain located at the front of the frontal lobes, crucial for decision making, social behavior, and personality expression.