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The document that comes with the card informs you that the interest rate on that card is 16.3 % APR. What is the effective an

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Answer #1

Cards will work on Monthly Compounding basis.

Effective Interest Rate = (1 + (APR/12))^12 - 1

Effective Interest Rate = (1 + (16.3%/12))^12 - 1

Effective Interest Rate = (1.01358)^12 - 1

Effective Interest Rate = 1.1757 - 1

Effective Interest Rate = 17.57%

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