What is your effective annual rate
Problem: Suppose you pay 15% as a nominal annual rate on your credit card. If you make monthly payments with monthly compounding, what is your effective annual rate?A. 1.25%
B. 15.00%
C. 16.08%
D. 18.80%
E. 19.24%
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If you make monthly payments with monthly compounding, what is your effective annual rate?
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what would be the primary obstacle to overcome in implementing such a policy?
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