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Question: You are considering two ways of financing a spring break vacation. You could put it on your credit card, at 12% APR, compounded monthly, or borrow the money from your patents, who want an interest payment of 10% every six months. Which Is the lower rate? The effective annual rate for your credit card is %. The effective annual rate for the loan from your parents is %. The option with the lower effective annual rate is.

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