Question
First National Bank charges 14.5 percent compounded monthly on its business loans. First United Bank charges 14.8 percent compounded semiannually. Calculate the EAR for First
| First National Bank charges 14.5 percent compounded monthly on its business loans. First United Bank charges 14.8 percent compounded semiannually. |
| Calculate the EAR for First National Bank and First United Bank. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) |
| EAR | |
| First National | % |
| First United | % |
| As a potential borrower, which bank would you go to for a new loan? | ||||
|
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Corporate Finance For Dummies
Authors: Michael Taillard
2nd Edition
1119850312, 978-1119850311
