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If a bank advertises a loan with 10% interest compounded monthly, which one of the following statements is correct? The EAR is higher than 10%

If a bank advertises a loan with 10% interest compounded monthly, which one of the following statements is correct?

		The EAR is higher than 10%
		APR = EAR.
		EAR < APR.
		The APR is 9.57%.
		You are effectively paying 10% annual interest on the loan.

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