ASHLEY HAS A CREDIT CARD THAT CHARGES INTEREST EVERY MONTH TO HER...

24. Ashley has a credit card that charges interest every month to her account balance. In this case, Ashley is paying an effective annual interest rate that: A) Equals the rate stated on her billing statement as the APR. B) Is equal to the APR compounded continuously. C) Is greater than the APR shown on her billing statement. D) Is equal to the annual percentage rate as required by the government. E) Will decline automatically as her account balance declines. Solution: C