As a college student, you probably receive many credit card offers in the mail. Consider these two offers. The first card charges a 17 percent APR. An examination of the footnotes reveals that this card compounds daily ( 365 days a year). The second credit card charges 18 percent APR and compounds semi-annually. What is the effective annual rate of the cheaper card? 18.53 percent 18.00 percent 20.00 percent 17.00 percent