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Comparing Interest Rates Suppose you can borrow money at 10.71% per year (APR) compounded semiannually or 11.97% per year (APR) compounded monthly. a. Calculate the
Comparing Interest Rates
| Suppose you can borrow money at 10.71% per year (APR) compounded semiannually or 11.97% per year (APR) compounded monthly. |
| a. | Calculate the Effective Annual Rate. (Do not round intermediate calculations. Round your answers to 2 decimal places.) |
| Effective Annual Rate | |
| 10.71% | % |
| 11.97% | % |
| b. | Which is the better deal? | ||||
|
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Finance For Nonfinancial Managers
Authors: Gene Siciliano
2nd Edition
0071824367, 978-0071824361
