SOLUTION: Your credit card charges interest of 1.2 percent per month. What is the annual percentage rate?

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Question 935513: Your credit card charges interest of 1.2 percent per month. What is the annual percentage rate?
Answer by Alan3354(69443) About Me  (Show Source):
You can put this solution on YOUR website!
Your credit card charges interest of 1.2 percent per month. What is the annual percentage rate?
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If it's simple, 1.2*12 = 14.4%
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If it's compounded monthly, it's 1 - (1 + 0.012)^12 = 15.3895%