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A Credit Card Has an APR of 18 Per Cent

Question 10

Multiple Choice

A credit card has an APR of 18 per cent and charges interest monthly.The effective annual rate on this account will:


A) be less than 18 per cent
B) be less than or equal to 18 per cent
C) equal 18 per cent
D) be greater than or equal to 18 per cent
E) be greater than 18 per cent

Correct Answer:

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