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1) Spartan Credit Bank charges an interest rate of 13.1 percent compounded monthly on its business loans. Elliot United Bank charges 13.4 percent compounded semiannually.
1) Spartan Credit Bank charges an interest rate of 13.1 percent compounded monthly on its business loans. Elliot United Bank charges 13.4 percent compounded semiannually. As a potential borrower, which bank would you go to for a new loan?
a) Spartan Credit Bank
b) Elliot United Bank
c) You should be indifferent between the two banks
d) Spartan Credit Bank, only if you know the bank manager
1) Spartan Credit Bank charges an interest rate of 13.1 percent compounded monthly on its business loans. Elliot United Bank charges 13.4 percent compounded semiannually. As a potential borrower, which bank would you go to for a new loan?
a) Spartan Credit Bank
b) Elliot United Bank
c) You should be indifferent between the two banks
d) Spartan Credit Bank, only if you know the bank manager
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