Answered: You open a credit card account that…

You open a credit card account that charges 1.25% interest each month on the unpaid balance. the effective annual interest rate is:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

You open a credit card account that charges 1.25% interest each month on the unpaid balance. the effective annual interest rate is:
O 7.50%
O 18.55%
O 16.08%
O 15.00%
16.78%

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