Final answer:
The Effective Annual Rate (EAR) on your credit card is approximately 16.55%.
Step-by-step explanation:
The Effective Annual Rate (EAR) on your credit card can be calculated using the formula:
EAR = (1 + i/n)^n - 1
Where i is the nominal interest rate and n is the number of compounding periods per year.
In this case, the nominal interest rate is 1.37% per month, which is equivalent to 0.0137. Since there are 12 months in a year, the number of compounding periods per year is 12.
Using the formula, we can calculate:
EAR = (1 + 0.0137/12)^12 - 1 ≈ 0.1655 or 16.55%
Therefore, the Effective Annual Rate on your credit card is approximately 16.55%.