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First National Bank charges 10.8 percent compounded monthly on its business loans. First United Bank charges 11.0 percent compounded semiannually. (a)Calculate the EAR for each

First National Bank charges 10.8 percent compounded monthly on its business loans. First United Bank charges 11.0 percent compounded semiannually.

(a)Calculate the EAR for each bank. (Round your answers to 2 decimal places (e.g., 32.16).)

(b) As a potential borrower, which bank would you go to for a new loan?

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