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Taylor's Hardware offers credit at an APR of 14.9 percent and compounds interest monthly. What actual rate of interest are they charging
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17 votes
17 votes
Taylor's Hardware offers credit at an APR of 14.9 percent and compounds interest monthly. What actual rate of interest are they charging

User ZygD
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1 Answer

16 votes
16 votes
Correct answer is : 15.96%

EAR = [1 + (.149 / 12)]12 - 1 = 15.96%
User Prudviraj
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