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EFG Bank will give your company a one - year loan at an interest rate of 20% payable at maturity, while KLM Bank will provide

EFG Bank will give your company a one - year loan at an interest rate of 20% payable at maturity, while KLM Bank will provide your company on a discount basis at 19% interest rate. Based on EFFECTIVE INTEREST RATE, which bank will you choose to avail the loan? Explain your answer by showing a comparison solution of the two (2) banks.

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