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9 October, 03:52

A credit card company advertises an APR of 14.7%, compounded daily. What

is the effective interest rate? Round your answer to two decimal places.

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Answers (1)
  1. 9 October, 04:11
    0
    16%

    Explanation:

    Effective interest rate = (1 + i/m) ^m - 1

    = (1 + 0.147/365) ^365 - 1

    = 0.1583

    = 0.16 = 16%
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