You are hired by Mistic Bank $($MB$)$ as a market strategist to

promote the bank$$s credit cards. A rival bank in town currently

offers credit cards with an annual percentage rate $($APR $=$ nominal

rate$)$ of $18\%,$ compounded annually. The CEO of MB asks you to design

two competitive programs $($or offers$)$ so that each program $($or

offer$)$ looks more attractive to customers in terms of the annual

percentage rate, and matches the offer of the rival bank exactly in

terms of the effective annual rate. Assume one year is the time

horizon.