Answered: A credit card offers financing at an…

A credit card offers financing at an APR of 22.5 percent, with monthly compounding on outstanding charges. What is the effective annual rate (EAR)? (Round answer to 2 decimal places, e.g. 52.75%.)

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 3STP

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A credit card offers financing at an APR of 22.5 percent, with monthly compounding on outstanding charges. What is the effective annual rate (EAR)? (Round answer to 2 decimal places, e.g. 52.75%.)

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