You are considering two ways of financing a spring break vacation. You could put it on your credit card, at

17%

APR, compounded monthly, or borrow the money from your parents, who want an interest payment of

6%

every six months. Which is the lower rate?(Note: Be careful not to round any intermediate steps less than six decimal places.)

The effective annual rate for your credit card is

%.

(Round to two decimal places.)

The effective annual rate for the loan from your parents is

%.

(Round to two decimal places.)

The option with the lower effective annual rate is

the loan from your parents

your credit card

.

(Select from drop-down menu.)