A credit card company charges an interest rate of 1.53% per month on the unpaid balance of all accounts. The annual interest, they claim, is 12(1.53%) =18.36%. What is the effective interest rate per year being charged by the company? Select the correct response: O 18.36% pa O 19.55% pa O 19.99% pa O 17.81% pa O 19.60% pa

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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A credit card company charges an interest rate
of 1.53% per month on the unpaid balance of
all accounts. The annual interest, they claim, is
12(1.53%) =18.36%. What is the effective
interest rate per year being charged by the
company?
Select the correct response:
O 18.36% pa
O 19.55% pa
O 19.99% pa
O 17.81% pa
O 19.60% pa
Transcribed Image Text:A credit card company charges an interest rate of 1.53% per month on the unpaid balance of all accounts. The annual interest, they claim, is 12(1.53%) =18.36%. What is the effective interest rate per year being charged by the company? Select the correct response: O 18.36% pa O 19.55% pa O 19.99% pa O 17.81% pa O 19.60% pa
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