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First National Bank charges 11.5 percent compounded monthly on its business loans. First United Bank charges 11.7 percent compounded semiannually. Requirement 1: Calculate the EAR

First National Bank charges 11.5 percent compounded monthly on its business loans. First United Bank charges 11.7 percent compounded semiannually.

Requirement 1:

Calculate the EAR for each bank.

First National Bank% First United Bank%

Requirement 2:

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

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