Question

@lulu22

A credit card had an APR of 11.91% all of last year and compounded interest daily. What was the credit card's effective interest rate last year?

A. 11.91%
B. 13.37%
C. 12.64%
D. 17.84%

Answer 1

isnt effective yeild a term for the APY?

Answer 2

\[(1+\frac{apr}{n})^n=(1+apy)\]
\[(1+\frac{apr}{n})^n-1=apy\]

Answer 3

since there are 365 days in a year, n = 365 to run that calculations with