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Student Credit Cards Most major banks offer a credit card service for students. For most student credit cards, you don't need to have a credit history but it is important to have a bad credit history What if you do have a bad crest history? There are two choices a prepaid or secured credit card. Prepaid cards allow you to spend up to the card balance, but they do not help build credit, Secured cards do help to build credit but are subject to Interest toes In 2019. Canadian credit card interest rates vaned widely, we sone as low as 129 percent and others as high 25 percent. Mest student cards tel in the middle at 1995 to 19.99 percent Credit limita for student cards can vary (starting at 500)depending on the type of card. Many have rewards programs that wow the cardholder team benefits. Examples include accumulating points toward free travel insurance coverage or warranties on products purchased using the card Annual foes depend on the fans of the card. For students with established credit some no annual fee cards offer cash back while others do not records charge fees between $30 per year and $120 per year. The approval process for getting a card's relatively simpln for most university and college students, and they can start building a credit history and enjoy convenience of having a credit card while still in school The printed information rarely uses the tem nominal or effective, or defines the compounding period. However, it is common in the credit card business for the annual interest rare to be divided into day rules for bring purposes. Hence, the quoted annual rate of 10.7 percent is a nominal rate and the compounding period is day. The actual effective interest rates then 505 - 10.2177.o 21.77 percent 1975 Discussion Interest information must be disclosed by law, but lenders and borrowers have some way on how and where they do it. Moreover, there is not desire to make the interest rate for lower than it really is for borrowers and higher than it really is for lenders In the example of student credit cards, the effective interest rate : 2177 percent, roughly 2 percent higher than the stated interest rate. The actual effective interest rate could even and up tong higher with lon such as late fees, over the limit foes, and transaction fees) For each interest rate quoted, determine if it is a nominal or effectiver les nominal, determine the compounding period and calculate the effective annual interest rate, a. The interest rate for a loan from a local bank is 6 percent compounded monthly b. The interest rate for a savings account from a local bank is 2 Bercent APY. APY is the annual rente vild For each interest rate quoted, determine if it is a nominal or effective rate. If it is nominal, determine the compounding period and calculate the effective annual interest rate. a. The interest rate for a loan from a local bank is 6 percent compounded monthly b. The interest rate for a savings account from a local bank is 2 percent APY APY is the annual percentage yield. a. Select the correct choice below and I necessary, fill in the answer box to complete your choice O A. This is a nominal rate with continuous compounding. The effective interest rate is percent (Type an integer or decimal rounded to two decimal places as needed.) B. This in a nominal rate with somiannual compounding. The effective interest rate in percent (Type an integer or decimal rounded to two decimal places as needed) C. This is a nominal rate with daily compounding. The effective interest rate is 21.77 percent (Type an integer or decimal rounded to two decimal places as needed) D. This is a nominal rate with weekly compounding. The effective interest rate is percent (Type an integer or decimal rounded to two decimal places as nooded) O E This is a nominal rate with quarterly compounding. The effective interest rate is percent (Type an integer or decimal rounded to two decimal places as needed.) OF. This is a nominal rate with monthly compounding. The effective interest rate is percent (Type an integer or decimal rounded to two decimal places as needed.) 1 G. This is an effective interest rate

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