Question
First National Bank charges 11.6 percent compounded monthly on its business loans. First United Bank charges 11.8 percent compounded semiannually. Calculate the EAR for each
First National Bank charges 11.6 percent compounded monthly on its business loans. First United Bank charges 11.8 percent compounded semiannually.
Calculate the EAR for each bank.
| First National Bank | % |
| First United Bank | % |
As a potential borrower, which bank would you go to for a new loan?
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Corporate Financial Management
Authors: Douglas R. Emery, John D. Finnerty, John D. Stowe
4th Edition
1935938002, 9781935938002
