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A credit card has an annual percentage rate (APR) of 22.75 percent and charges interest monthly. The effective annual rate (EAR) on this account: A)

  1. A credit card has an annual percentage rate (APR) of 22.75 percent and charges interest monthly. The effective annual rate (EAR) on this account:

A) will be less than 22.75 percent

B) can either be less than or equal to 22.75 percent

C) is 22.75 percent

D) will be greater than 22.75 percent

E) can either be greater than or equal to 22.75 percent

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