Find one of your credit card agreements, or your parent’s, or your friend’s, or go online and find one from a bank. (This information typically does NOT appear on your monthly credit card monthly bill) Note the following: 1. Name of credit card and issuing bank 2. Nominal annual interest rate, stated as “APR” (Annual Percentage Rate) for on-time payments 3. Maximum APR if payments are late, or credit limit exceeded, or bad check sent, or … 4. Stated compounding period (likely daily) – you may have to hunt for this, it’s likely buried later in the fine print CALCULATE: • Effective annual interest rate at nominal APR (from #2, above) • Effective annual interest rate at highest APR shown in the agreement (from #3, above) Note: Many APR’s are now being stated as some percentage plus the “Prime Rate.” The current Prime Rate is 4.5%.