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

13%

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

10%

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

Question content area bottom

Part 1

The effective annual rate for your credit card is

13.813.8%.

(Round to two decimal places.)

Part 2

The effective annual rate for the loan from your parents is

enter your response here%.

(Round to two decimal places.)