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. Effective Annual Rates ( LO2, CFA1 ) A credit card com p an y states an annual p ercenta g e rate ( APR

. Effective Annual Rates ( LO2, CFA1 ) A credit card com p an y states an annual p ercenta g e rate ( APR ) of 12 p ercent, which is actuall y a rate of 1 p ercent p er month. What is the EAR?
?
a. 12 p ercent
b. 12.68 p ercent
c. 13.08 p ercent
d. 13.76 p ercent

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