As a potential borrower you decide to compare their


First National Bank charges 13.6 percent compounded monthly on its business loans. First United Bank charges 13.7 percent compounded semiannually. As a potential borrower, you decide to compare their effective annual rates. First National Bank's business loans have an EAR of percent, whereas First United Bank's loans have an EAR of percent.

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Finance Basics: As a potential borrower you decide to compare their
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