NOMINAL INTEREST RATE AND EXTENDING CREDIT As a jewelry store manager, you want to offer credit, with interest on outstanding balances paid monthly. To carry receivables, you must borrow funds from your bank at a nominal $9\%,$ monthly compounding. To offset your overhead, you want to charge your customers an EAR $($or EFF$\%)$ that is $3\%$ more than the bank is charging you. What APR rate should you charge your customers?

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Answer:

$I_{\text{N}\text{O}\text{M}}=11\mathrm{.}729145\%$~~$11\mathrm{.}73\%$