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1. You have recently seen a credit card advertisement that states that the annual percentage rate is 8.9 percent. If the credit card requires monthly
1. You have recently seen a credit card advertisement that states that the annual percentage rate is 8.9 percent. If the credit card requires monthly payments, what is the effective annual rate of interest on the loan? (Round answer to 2 decimal places, e.g., 12.25.)
2a. What is the annual percentage rate (APR) on a loan that charges interest of 0.67 percent per month? (Round answer to 2 decimal places, e.g., 2.25.)
2b. What is the effective annual rate (EAR) on the loan described in (a)?
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