SOLUTION: A department store has its own credit card facilities, for which it charges interest at a rate of 2% each month. Explain briefly why this is not the same as an annual rate of 24%.
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Question 1072570: A department store has its own credit card facilities, for which it charges interest at a rate of 2% each month. Explain briefly why this is not the same as an annual rate of 24%. What is the annual percentage rate (effective interest rate)? Answer by Boreal(15235) (Show Source):
