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Edison needs a loan and is speaking to several lending agencies about their interest rates and loan terms. He particularly likes his local bank because

Edison needs a loan and is speaking to several lending agencies about their interest rates and loan terms. He particularly likes his local bank because he is being offered a nominal rate of 6.00%. However, since the bank is compounding its interest monthly, the loan will impose an effective interest rate of ____ on his loan. 6.29%

6.48%

6.17%

6.35%

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