What ear is the bank is charging

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Reference no: EM13751942

Assume a bank charges a 15.5% APR (annual percentage rate) on credit card holder compounds quarterly.

What EAR (effective annual rate) is the bank is charging? What if they change compounding to bi-monthly?

Compare the result from the bank perspective and the credit card holder perspective (your calculation should be set to 4 decimal places)

Reference no: EM13751942

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