Your credit card company quotes you a rate of 14.9%.Interest is billed monthly. What is the actual rate of interest you are paying?(Note: Two steps: 1. calculate the FV first; 2. With the given FV and PV, make N= 1 (for 1 year), computer for I/Y, which is your actual (or effective) rate.

First

N

I/Y

PV

PMT

FV

Second

N

I/Y

PV

PMT

FV