0. A typical bank offers you a Visa credit card that charges interest on unpaid balance at 1.75% per month compounded monthly.
0. A typical bank offers you a Visa credit card that charges interest on unpaid balance at 1.75% per month compounded monthly. This means that the nominal interest (annual percentage) rate for this account is A and the effective annual interest rate is B. Suppose your beginning balance was $600 and you make only the required minimum monthly payment (payable at the end of each month) of $20 for the next 3 months. If you made no new purchases with this card during this period, your unpaid balance (after your 3rd payment) will be C at the end of 3 months. What are the values of A, B, and C?
1. In January 1989, C&S, the largest mutual saving bank in Georgia, published the following information: interest, 7.55%; effective annual yield, 7.842%. The bank did not explain how the 7.55% is connected to the 7.842%, but you can figure out that the compounding scheme used by the bank should be ________.