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In your search for the best rate of on a new car loan, you note that various lenders quote rates with differing compounding frequencies. Your
- In your search for the best rate of on a new car loan, you note that various lenders quote rates with differing compounding frequencies. Your car dealer offers financing at 5 % compounded monthly. For you to be indifferent as to which lending rate to choose, what would the nominal rate be on a loan from another lender with interest compounded.
- annually?
- Semi-annually?
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