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( b ) Ahmed is considering a loan of Rs 3 5 0 0 0 0 . Ile has two options: Bank.A . S .

(

)

Ahmed is considering a loan of Rs

350000 .

Ile has two options:

Bank.A

.

.

%

per annum, compounding monthly

Bank B

. 7.5 %

per annum, compounding weekly.

Which option should be selected? Justify your answer using effective interest rate.

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