Ask Question
6 April, 15:23

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?

+4
Answers (1)
  1. 6 April, 15:52
    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 you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers