You are considering two ways of financing a spring break vacation. You could put it on your credit card, at 14% APR, compounded monthly, or borrow the money from your parents, who want an interest payment of 9% every six months. Which is the lower rate?

Part 1

The effective annual rate for your credit card is what percent ? (Round to two decimal places.)

Part 2 The effective annual rate for the loan from your parents is what percent (Round to two decimal places.)

Part 3 The option with the lower effective annual rate is which option