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Cape Cod Trust charges 8.1 percent compounded monthly on its business loans. Rockland Trust charges 9.4 percent compounded semiannually. Calculate the EAR for both banks.

Cape Cod Trust charges 8.1 percent compounded monthly on its business loans. Rockland Trust charges 9.4 percent compounded semiannually.

Calculate the EAR for both banks. Which bank should you borrow from?

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