First Bank is sending alumni of universities an invitation to obtain a credit card, with the name of their university written on it, for a nominal 9.9% interest per year after 6 months of 0% interest. These interest rates apply to the outstanding debt if not paid by a specified date each month, and hence interest is compounded monthly. If you fail to make the minimum payment in any month, your interest rate could increase (without notice) to a nominal 19.99% per year. Calculate the effective annual interest rates the credit company is charging in both cases Contributed by D. P. Loucks, Cornell University.