Ask Question
BusinessBusiness
10 July, 11:31

A credit card had an APR of 16.42% all of last year and compounded interest daily. What was the credit card's effective interest rate last year?

+5
Answers (1)
  1. 10 July, 11:48
    0
    To calculate the effective interest rate you'll need the following formula.

    (1 + APR / n) ^n - 1 * 100.

    IT looks alot harder than it is.

    APR has to be expressed as a decimal, so 0.1642.

    n is the period. as it is daily, n=365.

    1 + (0.1642/365) to the power of 365. will give you 1.1784 ...

    Minus 1, and times by 100 to get it as a percentage = 17.84%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A credit card had an APR of 16.42% all of last year and compounded interest daily. What was the credit card's effective interest rate last ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
At the beginning of the year, a company had a balance in its prepaid insurance account of $48,400. During the year, $86,000 was paid for insurance.
Answers (1)
Four buyers are in the market for a new car. suppose buyer 1 is willing to pay $20,000, buyer 2 is willing to pay $56,000, buyer 3 is willing to pay $34,000, and buyer 4 is willing to pay $18,000.
Answers (1)
Why do some people resist the goal of becoming world class? How can this resistance be overcome?
Answers (1)
Journalize the entries to record the following selected bond investment transactions for Starks Products: For a compound transaction, if an amount box does not require an entry, leave it blank. a. Purchased for cash $102,000 of Iceline, Inc.
Answers (1)
Bellue Inc. manufactures a single product. Variable costing net operating income was $115,600 last year and its inventory decreased by 2,300 units. Fixed manufacturing overhead cost was $4 per unit for both units in beginning and in ending inventory.
Answers (1)
New Questions in Business
A company has two departments and allocates all overhead costs based on department revenues. The following information applies: Department 1 revenue $1,000,000 Department 2 revenue 1,500,000 Corporate overhead costs 250,000 Department overhead costs
Answers (1)
The most useful allocation basis for the departmental costs of an advertising campaign for a storewide sale is likely to be: Multiple Choice An equal amount of cost for each department. Number of customers to enter each department.
Answers (1)
What happens when a bond becomes due? A The issuer will pay you back, minus interest. B The issuer will pay you back, plus interest. C You pay it back to the issuer, plus interest. D You pay it back to the issuer, minus interest.
Answers (2)
The emphasis of a marketing strategy for a continuous innovation concentrates on
Answers (1)
Daphne handles the payroll and performance appraisals of employees. Which business department does Daphne belong to?
Answers (2)
Home » Business » A credit card had an APR of 16.42% all of last year and compounded interest daily. What was the credit card's effective interest rate last year?
Sign Up Forgot Password?