7. You just got the Amazon credit card. The annual rate is 19.8% and interest compounds daily. What is the effective annual rate (EAR)? Convert to a percent round to 2 decimal places.

8. You know that average returns on the stock market have ranged between about 8% and 12% per year in recent decades. So when an investor claims that there is an investment that can give you a guaranteed average return of 9% per month, you did not believe them. What would be the annual percentage rate on the investment that the editor describes? Answer as a percent.