Ask Question
13 May, 04:46

A credit card issuer offers an APR of 19.94% and compounds interest monthly. Find the effective interest rate and explain which the card issuer is mostly likely to advertise, its APR or its effective interest rate?

+1
Answers (1)
  1. 13 May, 04:48
    0
    ((1+0.1994/12) ^12) - 1 = 21.87% effective rate

    it would advertise the APR because it is lower
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A credit card issuer offers an APR of 19.94% and compounds interest monthly. Find the effective interest rate and explain which the card ...” in 📗 Mathematics 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