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1.) Rahul needs a loan and is speaking to several lending agencies about the interest rates they would charge and the terms they offer. He

1.) Rahul needs a loan and is speaking to several lending agencies about the interest rates they would charge and the terms they offer. He particularly likes his local bank because he is offered a nominal rate of 6%. But the bank is compounding monthly. What is the effective interest rate that Rahul would pay for the loan?

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