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You need to get a loan to pay some of your business expenses and your bank offer several loan options as follows: option 1: 4 percent APR with daily compounding option 2: 4 percent APR with continuous compounding Option 3: 4 percent APR with semiannual compounding, Option 4: 3.98 percent APR with daily compounding. (there is 365 day in a year) option 4 option 3 option 2 option 1