Here goes, this is the scope of my question: Say I want to take out a credit card, that has 0% interest for 12 months, when at the 13th month, whatever debt is taken out on the card will be subjected to a 12% APR finance charge from then after. Lets say the card compounds monthly.
If I know the length of time I want to hold the debt say 3 years out from today, ie, 12 months of 0% interest, and 24 months at the 12% situation, how do I calculate the effective annual interest rate of the card accounting for the real situation that it is 0% apr for 1 year. I'm not asking how to convert 12% apr monthly compound to effective annual interest, rather I want to know what is the EAR accounting for both of these interest periods. Thanks!