Expert Card has an APR of 23.4% compounded monthly. Passport has a daily periodic interest rate of 0.0375%. Explore has a monthly periodic interest rate of 1.95%. Which card has a higher APR?

A. Expert Card
B. Passport
C. Explore
D. Expert Card and Explore are High

Question

Expert Card has an APR of 23.4% compounded monthly. Passport has a daily periodic interest rate of 0.0375%. Explore has a monthly periodic interest rate of 1.95%. Which card has a higher APR?

A. Expert Card 
B. Passport
C. Explore 
D. Expert Card and Explore are High

anonymous · Answer

do you have you have the equation that converts APR into monthly rates?

anonymous · Answer

$$EffectiveRate = (1+APR)^{1/n} - 1$$