Acredit card issuer offers an apr of 13.64% and compounds interest daily. which is it most likely to advertise, its apr or its effective interest rate? a. it's apr, because it's 0.97% less than its effective interest rate. b. it's apr, because it's 0.97% greater than the effective interest rate. c. it's effective interest rate, because it's 0.97% less than the apr

To find the effective interest rate the formula is
R=(1+r/k)^(k)-1
R=?
r=nominal Interest rate 0.1364
K=compounded daily 365
Plug in the formula
R=(1+0.1364÷365)^(365)−1
R=0.1461 This the effective interest rate 14.61%
As you can see that the effective interest rate is greater than the nominal interest rate by
0.1461−0.1364=0.0097×100=0.97%

So the answer is a

Hope it helps!

He secknd step was the answer to them

Ibelieve it would be letter c (: