Follow the instruction

Question 6 What effective annual rate results from daily compounding of 8% (Assume 365 days)? b. Suppose that you carry a sizable balance on your credit card, issued by your bank. Your bank quotes only the annual percentage rate (APR) on your credit card. You make monthly credit card payments. Suppose that you found out that the effective annual rate (EAR), which you pay on your card is 25% per year. What is the APR that your bank quotes for you? a. Providing formulas in symbols. Formulas are those used in the lecture notes and the text book. Excel or Financial Calculator formulas are NOT appropriate substitutes. b. Illustrating how you plug numbers, given in each question, into these formulas. c. Writing a short verbal summary at the end of the problem Please use posted HW solutions as a guide on how detailed your solutions should be. 8. Draw timelines and graphs to illustrate your answers. Ves Requirements for solutions: As always, you need to write your detailed solutions, in which you need to: 1. Provide the appropriate formula for each step in each problem. Formulas should be written in symbols (please, do not write Excel formulas -- they do not count). 2. Show how you plug numbers from the problem into each formula 3. Present time lines and graphs, etc., where appropriate. 4. Write a short verbal comment at the end of each step in each problem, explaining what you achieved with your calculations 5. Write a short verbal conclusion at the end of each problem with the summary of your results. 6. A numerical answer by itself (even if it is correct) without a detailed solution and explanations does not deserve ANY credit. 7. Use my posted solutions as examples of how to write a detailed solution to a