You are considering two ways of financing a spring break vacation. You could put it on your credit card, at 18% APR, compounded monthly, or borrow the money from your parents, who want an interest payment of 8% 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 ___________

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