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( Calculating an EAR ) ( Related to Checkpoint 5 . 7 on page 1 7 9 ) After examining the various personal loan rates

(Calculating an EAR)(Related to Checkpoint 5.7 on page 179) After examining
the various personal loan rates available to you, you find that you can borrow funds from a finance company at 12 percent compounded monthly or from a bank at 13 percent compounded annually. Which alternative is the more attractive?

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