Question

Credit card A offers an APR of 25.68%, compounded monthly, while credit card B offers an APR of 25.32%, compounded daily. All else being equal, which card offers the better deal for the consumer?
A.Credit card B, because its effective interest rate is about 0.13% greater than that of credit card A.
B. Credit card B, because its effective interest rate is about 0.13% less than that of credit card A.
C. Credit card A, because its effective interest rate is about 0.13% less than that of credit card B.
D. Credit card A, because its effective interest rate is about 0.13% greater than tha

Answer 1

Work the quantities
\[\left(1+\dfrac{0.2568}{12}\right)^{12}\]

and
\[\left(1+\dfrac{0.2532}{365}\right)^{365}\]

Answer 2

still don't get it