Final answer:
The annually compounded rate is 16.08% and the APR is 15%.
Step-by-step explanation:
An annually compounded rate can be calculated using the formula: (1 + monthly rate)^12 - 1. For a credit card with an interest rate of 1.25% per month, the annually compounded rate would be (1 + 0.0125)^12 - 1 = 16.08%. Therefore, the answer is option a. 16.08%.
The APR (Annual Percentage Rate) represents the cost of borrowing on a yearly basis. The APR can be calculated by multiplying the monthly rate by 12. In this case, the APR would be 1.25% * 12 = 15%. Therefore, the answer is option d. 15%.