Sheila's Interior Designs offers credit to its customers at a rate of 1.15 percent per month....

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Sheilas Interior Designs offers credit to its customers at a rate of 1.15 percent per month. What is the effective annual ra

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Answer 1

Answer #1

EAR=[(1+APR/m)^m]-1
where m=compounding periods

=[(1+0.0115)^12]-1

=14.71%(Approx).

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Answer 2

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Sheila's Interior Designs offers credit to its customers at a rate of 1.15 percent per month....

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Sheila's Interior Designs offers credit to its customers at a rate of 1.15 percent per month....

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