Compound Interest question

Question

Carol Miller went on vacation and bought a $74 souvenir. It is the only charge on her credit card, which has an annual interest rate of 10%. If it is compounded daily, how much interest would accrue after 2 years (assume she has no other charges or late fees)? What is the effective rate?

Answer 1

74 (1+(.10/730))^730 - 74 = $7.78 would accrue

10.52% is the effective rate