As a college student you probably receive many credit card, Financial Management

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As a college student you probably receive many credit card

As a college student you probably receive many credit card offers in the mail. Consider these two offers. The first card charges a 17% APR. An examination of the footnotes reveals that this card compounds daily (365 day year). The second credit card charges 18% APR and compounds semiannually. What is the effective annual rate of the cheaper card?

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