A community for students. Sign up today!
Here's the question you clicked on:
← 55 members online
 0 viewing
 2 years ago
Bob opened a credit card at a department store with an APR of 23.99% compounded monthly. What is the APY on this credit card?
26.81%
2.00%
47.98%
32.91%
 2 years ago
Bob opened a credit card at a department store with an APR of 23.99% compounded monthly. What is the APY on this credit card? 26.81% 2.00% 47.98% 32.91%

This Question is Closed

mathmate
 2 years ago
Best ResponseYou've already chosen the best response.1Without calculations, it seems to me that 26.81 is the right answer, because APY is usually a little higher than APR. Let's check: For a year, there are 12 compoundings, and each time the rate of interest is 23.99%/12 So APY=(1+0.2399/12)^121 = 0.2681 yay!
Ask your own question
Ask a QuestionFind more explanations on OpenStudy
Your question is ready. Sign up for free to start getting answers.
spraguer
(Moderator)
5
→ View Detailed Profile
is replying to Can someone tell me what button the professor is hitting...
23
 Teamwork 19 Teammate
 Problem Solving 19 Hero
 Engagement 19 Mad Hatter
 You have blocked this person.
 ✔ You're a fan Checking fan status...
Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.