A credit card dharges an APR of 14.90% compounded quarterly. What is the Effective Annual Rate...

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Answer 1

Answer #1

Effective annual rate = (1 + APR/n)ⁿ - 1

Effective annual rate = (1 + 0.149/4)⁴ - 1

Effective annual rate = (1 + 0.03725)⁴ - 1

Effective annual rate = 1.1575 - 1

Effective annual rate = 0.1575 or 15.75%

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Answer 2

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