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A credit card charges an Annual Percentage Rate (APR) of 0.14 with 12 monthly

payments. What is the Effective Annual Rate (EAR) on the credit card?

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Effective APR = (1 7 jacriodicrate )
Number of comforting periods
0 .19
we have divided orn by 12 because it is Hornual rate
but payment is monthly.
- 1 1493 - 1
Effective APR ~ 14. 93 ....

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