You find an advertisement for a credit card that will give you a credit limit of $$15,000.$ It has a stated rate of $18\%.$ However, when you read the fine print you see that it is really compounded monthly.

a$)$ Calculate the EAR for this credit card If you immediately made a $$15,000$ cash would you owe three years from now?

a$)$ EAR$=26\mathrm{.}82\%$