SOLUTION: Ellen�s charge card statement states that the effective annual interest rate is 18.9%. Calculate the nominal rate of interest compounded daily.

Question 460360: Ellen�s charge card statement states that the effective annual interest rate is
18.9%. Calculate the nominal rate of interest compounded daily.
Found 2 solutions by stanbon, MathOclock:
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Ellen�s charge card statement states that the effective annual interest rate is
18.9%. Calculate the nominal rate of interest compounded daily.
-----------------
(1+ 0.189/365)^(365*1) = 1.21
----
nominal rate of interest compounded daily = 21%
====================================================
Cheers,
Stan H.

Answer by MathOclock(6) (Show Source): You can put this solution on YOUR website!
What Stanbons answer was was correct but theres mor work he left out
RELATED QUESTIONS
What is the effective annual rate of nominal of 4% compounded... (answered by Theo)
Suppose your credit card issuer states that it charges a 17.00% nominal annual rate, but... (answered by Boreal)
. Determine the effective interest rate (APR) if the nominal rate is 7% compounded... (answered by jorel1380)
You have seen a credit card advertisement stating that the annual percentage rate is 12... (answered by jim_thompson5910)
Find the nominal rate corresponding to an effective rate of 5.85% if interest is... (answered by ikleyn)
A fund earns interest at the nominal rate of 8% compounded quarterly. At the end of each (answered by addingup)
John invested his money at a nominal interest rate of 12% compounded annually but the... (answered by CPhill)
find the nominal interest rate if a bank advertises that the effective interest rate on... (answered by stanbon)
If r is the nominal rate and n is the number of times interest is compounded... (answered by ikleyn,Theo)