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Gomez Electronics needs to arrange financing for its expansion program. bank a offers to lend Gomez the required fund on a loan where interest must

Gomez Electronics needs to arrange financing for its expansion program. bank a offers to lend Gomez the required fund on a loan where interest must be paid monthly, and the quotes rate is 8 per cent. bank b will charge 9 percent, with interest due at the end of the year, what is the difference in the effective annual rates charged by the two banks?

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