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30 August, 19:32

Emily opened a credit card at a department store with an APR of 12.36% compounded twice a year. What is the APY on this credit card?

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  1. 30 August, 22:30
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    APY = (1+r/k) ^ (k) - 1

    R = 0.1236

    K compounded twice a year 2

    APY = (1+0.1236:2) ^ (2) - 1

    APY=0.1274*100=12.74%
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