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Bank One offers to lend you $50,000 at a nominal rate of 7.20% compounded monthly. Bank Two also offers to lend you the $50,000 but

Bank One offers to lend you $50,000 at a nominal rate of 7.20% compounded monthly. Bank Two also offers to lend you the $50,000 but it will charge a nominal rate of 7.40% compounded annually. What is the difference in the Effective rate of two banks and which Bank would you go to for the Loan?

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