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In order to invest, Junior needs to take a loan. Two banks offer the following loan rates. One lends at 8.5%interest, with daily compounding. The
In order to invest, Junior needs to take a loan. Two banks offer the following loan rates. One lends at 8.5%interest, with daily compounding. The other lends at 8.35% with quarterly compounding. Calculate EAR and decide which bank he should choose.
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