Question

Help!!!!!: Ben opened a credit card at a department store with an APR of 27.99% compounded monthly. What is the APY on this credit card?

2.33%
31.88%
39.27%
55.98%

Answer 1

The answer is B. 31.88%

Answer 2

31.88%

Explanation:

The monthly added compound interest will be:

3.89 %

The new APY interest on the credit card = 3.89 + 27.99

= 31.88 %