Calculating ear-which bank would you go to for a new loan
Question:
Calculating EAR. First National Bank charges 12.6 percent compounded monthly on its business loans. First United Bank charges 12.8 percent compounded semiannually. As a potential borrower, which bank would you go to for a new loan?
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Q1. What is the effective annual interest rate on this lending arrangement?
First United Bank charges 12.8 percent compounded semiannually. As a potential borrower, which bank would you go to for a new loan?
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