You are considering two ways of financing a spring break vacation. You could put it on your credit card, at 12% APR, compounded monthly, or borrow the money from your parents, who want an interest payment of 10% every six months. Which is the lower rate?  (Note: Be careful not to round any intermediate steps less than six decimal places.) The effective annual rate for your credit card is _____%. (Round to two decimal places.) The effective annual rate for the loan from your parents is _____%. (Round to two decimal places.) The option with the lower effective annual rate is (your credit card/the loan from your parents).

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Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.