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Your monthly statement from your bank credit card shows that the monthly rate of interest is 1.5%. What is the annual effective rate of interest you are being charged on your credit card

Respuesta :

Answer:

the effective annual rate of interest is 19.56%

Explanation:

The computation of the annual effective rate of interest is shown below:

Since the monthly rate of interest is 1.5%

So,

Annual interest is

= 1.5 % × 12 months

= 18 %

Now  

Effective annual rate of interest is

= ( 1 + 0.18 ÷ 12)^12 - 1

= 0.1956

= 19.56 %

hence, the effective annual rate of interest is 19.56%

e886harris

Answer:

i believe your annual rate of interest is 19.56%

Explanation:

I just answered that question

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