SOLUTION: A commercial bank charges 2% interest per month on the unpaid balance of loans made by its credit card subscribers. It claims that the annual interest applied is 12(2%) = 24%. Is t
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Question 1184927: A commercial bank charges 2% interest per month on the unpaid balance of loans made by its credit card subscribers. It claims that the annual interest applied is 12(2%) = 24%. Is this true? Answer by Alan3354(69443) (Show Source):
You can put this solution on YOUR website! A commercial bank charges 2% interest per month on the unpaid balance of loans made by its credit card subscribers. It claims that the annual interest applied is 12(2%) = 24%. Is this true?
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No. It's 1.02^12 =~ 1.268 --> 26.8% per year
