Your credit card agreement states that interest on any outstanding balance is computed monthly and at a rate of 1.25% on the outstanding balance. What is the effective annual interest rate on this credit card account?© BrainMass Inc. brainmass.com June 4, 2020, 12:47 am ad1c9bdddf
Effective annual rate takes into account the compounding. Here the interest rate is 1.25% on a monthly basis, implies that the ...
The solution explains how to calculate the effective annual interest rate for a credit card account are determined.