What is the effective interest rate

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Reference no: EM131807564

Quentin has been using his credit card too much. His plan is to use only cash until the balance of $8574 is paid off. The credit card company charges 18% interest, compounded monthly. What is the effective interest rate? How much interest will he owe in the first month's payment? If he makes monthly payments of $225, how long until it is paid off? Contributed by Paul R. McCright, University of South Florida.

Reference no: EM131807564

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