Question

Herman opened a credit card at a department store with an APR of 24.45% compounded semiannually. what is the APY on this credit card?

Answer 1

@sillybilly123 whenever you get a chance

Answer 2

Semiannually means two.
so add 24.45 + 24.45
the answer would be A) 48.90%

Answer 3

i think these are American ideas, i'd be amazed if the EU allowed compounding to bend the meaning of APR: makes absolutely no sense.

So, having googled this, and for semi-annual:


\(APY = \left( 1 + \dfrac{APR}{2}\right)^2 - 1 = \left( 1 + \dfrac{0.2445}{2}\right)^2 - 1 = \dots\)