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(Solved): You recently received a letter from a local bank that offers you a new credit card that has no annua ...



You recently received a letter from a local bank that offers you a new credit card that has no annual fee. It states that the annual percentage rate (APR) is 13 percent on outstanding balances. Note that the annual percentage rate does not account for compounding, rather the APR is simply the periodic rate times the number of periods.

What is the effective annual interest rate? (This rate is subject to monthly compounding.) Record your answer as a decimal.



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