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It can be calculated with the following formula: ⎛ EAR 1 n. APR ⎞ 1, where . n. is the number of compounding periods per year. ⎝⎜ n ⎠⎟ Benny’s credit card APR is 26.55% compounded daily. What is his actual interest rate per year—that is, his EAR? REFLECTION: ................
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