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29 April, 10:44

Credit card a offers an APR of 25.68%, compounded monthly, while credit card B offers and APR of 25.32%, compounded daily. All else being equal, which card offers the better deal for the customer?

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  1. 29 April, 11:14
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    Monthly

    100 * (1+0.2568:12) ^ (12) = 128.9

    Daily

    100 * (1+0.2532:360) ^ (360) = 128.8

    So 25.68%, compounded monthly

    Is a better deal due to higher interest rate
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