Acredit card issuer offers an apr. of 22.08% and compounds interest daily. which is it most likely to advertise, its apr or it’s effective interest rate?

The credit card issuer will show APR which is 22.08% and not effective rate of interest. This is because Effective rate, when calculated with the formula given below will come as 24.67% which is 2.59% more and hence will make customers feel that they are paying more. r = [ { (1+ i / n) ^ (n) } - 1] * 100 Where i = APR/100 n = number of compounding periods which is 365 in this case as compounding is done daily. [ { (1+ 0.2208 / 365) ^ (365) }- 1] * 100

It’s hard to understand what you put.. can you show a picture ?