Question

Eden opened a credit card at a department store with an APR of 19.07% compounded monthly. What is the APY on this credit card?

Answer 1

please

Answer 2

http://allfinancialmatters.com/2006/10/12/how-to-convert-an-interest-rate-to-an-annual-percentage-yield-apy/

Answer 3

:)

Answer 4

APY = (1 + r ÷ n)n – 1
------------------------------
r = interest rate
n = the number of compounding periods
------------------------------
your PERIOD is monthly, so over a Y, APY(ear), that'd be 12 periods
your interest rate is the APR. or 19.07%, which would be 0.1907 in decimals

Answer 5

$$
APY = \pmatrix{1+\frac{\color{red}{0.1907}}{\color{blue}{12}}}^{\color{blue}{12}}-1
$$