Question

a credit card had a APR of 33.01% all of last year and compounded interest daily. what was the credit cards effective interest rate last year?

Answer 1

39.09

Explanation:

APEX

Answer 2

Effective annual rate = (1 + r / m )^m - 1

r = Annual nominal rate of interest

m = Number of compounding periods in a year

Effective annual rate =(1 + 33.01% / 365 )^365 - 1 = 39.09%

Explanation: