Determine the effective annual rate
Question: A loan disclosure, as required by law, states that a credit card has an interest rate of 18.2%. Interest is compounded on a quarterly basis. Determine the effective annual rate?
[A] 17.08%
[B] 19.48%
[C] 19.64%
[D] 16.84%
[E] 16.96%
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A loan disclosure, as required by law, states that a credit card has an interest rate of 18.2%. Interest is compounded on a quarterly basis. Determine the effective annual rate?
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