Question

Asked Jan 30, 2019

You are considering getting a new credit card from Imperial Credit Union. The credit union has quoted you a rate of 17.7 percent, compounded monthly. What is the actual rate of interest you will be paying?

Step 1

Annual rate of Interest is given as 17.70%. (compounding monthly)

Monthly rate of interest (17.70/12) = 1.475%

Now, effective annua...

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