Problem

Most of you have credit cards, so you already know that if you do not pay the balance on...

Most of you have credit cards, so you already know that if you do not pay the balance on time, the credit card issuer will charge you a certain interest rate each month. Assuming that you are charged 1.25% interest each month on your unpaid balance, what are the nominal and effective interest rates? Also, determine the effective interest rate that your own credit card issuer charges you.

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Solutions For Problems in Chapter 20