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Credit card a offers an APR of 25.68%, compounded monthly, while credit card B offers and APR of 25.32%, compounded daily. All else being equal, which card offers the better dea…

Credit card a offers an APR of 25.68%, compounded monthly, while credit card B offers and APR of 25.32%, compounded daily. All else being equal, which card offers the better dea…
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1 vote
credit card a offers an APR of 25.68%, compounded monthly, while credit card B offers and APR of 25.32%, compounded daily. All else being equal, which card offers the better deal for the customer?

asked
User Vikas Mangal
by
7.8k points

1 Answer

5 votes
Monthly
100×(1+0.2568÷12)^(12)=128.9
Daily
100×(1+0.2532÷360)^(360)=128.8

So 25.68%, compounded monthly
Is a better deal due to higher interest rate
answered
User Marcos Lara
by
8.3k points
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