% per The effective annual interest rate is year. (Round to two decimal places!)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Please do it in excel

A large bank has increased its annual percentage rate
(APR) on credit cards to 28%. This move was necessary
because of the "additional risks" faced by the bank in a
weak economy. If monthly compounding is in effect, what
is the effective annual interest rate being charged by the
bank?
The effective annual interest rate is
% per
year. (Round to two decimal places!)
Transcribed Image Text:A large bank has increased its annual percentage rate (APR) on credit cards to 28%. This move was necessary because of the "additional risks" faced by the bank in a weak economy. If monthly compounding is in effect, what is the effective annual interest rate being charged by the bank? The effective annual interest rate is % per year. (Round to two decimal places!)
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