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You are considering two ways of financing a spring break vacation. You could put it on...

You are considering two ways of financing a spring break vacation. You could put it on your credit​ card, at 18% ​APR, compounded​ monthly, or borrow the money from your​ parents, who want an interest payment of 8% every six months. Which is the lower​ rate? (Note: Be careful not to round any intermediate steps less than six decimal​ places.)

The effective annual rate for your credit card is ______ ​(Round to two decimal​ places.)

The effective annual rate for the loan from your parents is______ (Round to two decimal​ places.)

The option with the lower effective annual rate is ___________

.

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