Answered: A bank charges 1 ½% per month on the…

A bank charges 1 ½% per month on the unpaid balance for purchases made with its credit card. This is equivalent to what effective annual interest rate?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 3P

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A bank charges 1 ½% per month on the unpaid balance for purchases made with its credit card.
This is equivalent to what effective annual interest rate?

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