Your credit card company quotes you a rate of 17.9 percent. Interest is compounded daily. What...
Your credit card company quotes you a rate of 17.9 percent. Interest is compounded daily. What is the actual (effective) rate of interest you are paying?
A) 19.03%
B)19.21%
C) 19.44%
D) 19.60%
E) 19.72%
Homework Answers
EAR=(1+APR/m)^m-1
where m=compounding periods
=(1+0.179/365)^365-1
which is equal to
=19.60%(Approx).
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