Calculating the effective annual rate) You've just received an offer from a bank for a credit card with a quoted rate, or APR, of 8 percent compounded monthly. What's the EAR, or effective annual rate, on the credit card?

Calculating the effective annual rate) You've just received an offer from a bank for a credit card with a quoted rate, or APR, of 8 percent compounded monthly. What's the EAR, or effective annual rate, on the credit card?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

(Calculating

the effective annual

rate)

You've just received an offer from a bank for a credit card with a quoted rate, or APR, of

percent compounded

monthly.

What's the EAR, or effective annual rate, on the credit card?

nothing%

(Round to two decimal places.)

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