Micaela’s CapitalTwo credit card advertises great rewards, travel benefits, and wide acceptance; the fine print explains that the card charges interest with an APR of 27.375% compounded daily. Micaela plans to use this card to fund an investment that requires her to make equally sized annual payments for the next 5 years. If you were going to help Micaela by calculating the present value of these 5 payments using the annuity formula,
what interest rate would you use in the formula?