We have been given that a credit card had an APR of 14.86% all of last year, and compounded interest daily. We are asked to find the effective interest rate of the credit card.
We will use effective interest rate formula to solve our given problem.
, where
= Annual interest rate in decimal form,
m = Number of times interest is compounded per year,
n = Number of compounding periods the rate is required for.
![14.86\%=\frac{14.86}{100}=0.1486](https://tex.z-dn.net/?f=14.86%5C%25%3D%5Cfrac%7B14.86%7D%7B100%7D%3D0.1486)
We need rate for 1 year, so n will be 365 times 1.
![\text{Effective rate}=(1+\frac{0.1486}{365})^{365\cdot 1}-1](https://tex.z-dn.net/?f=%5Ctext%7BEffective%20rate%7D%3D%281%2B%5Cfrac%7B0.1486%7D%7B365%7D%29%5E%7B365%5Ccdot%201%7D-1)
![\text{Effective rate}=(1+0.0004071232876712)^{365}-1](https://tex.z-dn.net/?f=%5Ctext%7BEffective%20rate%7D%3D%281%2B0.0004071232876712%29%5E%7B365%7D-1)
![\text{Effective rate}=(1.0004071232876712)^{365}-1](https://tex.z-dn.net/?f=%5Ctext%7BEffective%20rate%7D%3D%281.0004071232876712%29%5E%7B365%7D-1)
![\text{Effective rate}=(1.1601737274495528201)-1](https://tex.z-dn.net/?f=%5Ctext%7BEffective%20rate%7D%3D%281.1601737274495528201%29-1)
![\text{Effective rate}=0.1601737274495528201](https://tex.z-dn.net/?f=%5Ctext%7BEffective%20rate%7D%3D0.1601737274495528201)
Let us convert effective rate in percent.
![0.1601737274495528201\times 100\%=16.01737274495528201\%\approx 16.02\%](https://tex.z-dn.net/?f=0.1601737274495528201%5Ctimes%20100%5C%25%3D16.01737274495528201%5C%25%5Capprox%2016.02%5C%25)
Therefore, the effective interest rate would be
.
Answer:
x=17
Step-by-step explanation:
First, Isolate the variable x by transposing it.
24-3x=-27
-3x=-27-24
Add the equation.
-3x=-51
Simplify x by multiplying both sides by 1/-3.
-3x/-3= -51/3
x=17
There should be a point the line is going through, (1,2).
We have given that,
N55.60 for 1yr 6 months at the rate of 2%
We have to determine the principal which will yield simple interest of N55.60 for 1yr 6 months at the rate of 2%.
<h3>
What is the simple interest?</h3>
![A = P (1 + rt)](https://tex.z-dn.net/?f=A%20%3D%20P%20%281%20%2B%20rt%29)
A = final amount
P = initial principal balance
r = annual interest rate
t = time (in years)
x = inches
y = miles
per 1 inch = 2 miles
so on the graph, there should be a point the line is going through, (1,2).
To learn more about the simple interest visit:
brainly.com/question/2294792
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I believe it is the Odometer