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Part a. Suppose your credit card has a quoted nominal APR of 21%, with interest compounded daily. What is the effective annual rate on this
Part a. Suppose your credit card has a quoted nominal APR of 21%, with interest compounded daily. What is the effective annual rate on this card?
Part b. Assume further that a bank wants to charge the same effective rate as the credit card, but with monthly compounding. What would be the nominal rate for that bank?
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