The Gallery offers credit to its customers at a rate of 1.6 percent per month. What is the effective annual rate (EAR or EFF%) of this credit offer? a) 7.06% b) 20.98% c) 13.20%

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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The Gallery offers credit to its customers at a rate of 1.6 percent per month. What is the effective annual rate (EAR or EFF%) of this credit offer?

a) 7.06%

b) 20.98%

c) 13.20%

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