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Papa bank offers to lend you RM 100,000 at a nominal rate of 5.0%, with interest paid quarterly. Mama Bank offers to lend you the
Papa bank offers to lend you RM 100,000 at a nominal rate of 5.0%, with interest paid quarterly. Mama Bank offers to lend you the RM 100,000, but it will charge 6.0%, with interest paid at the end to the year. Compute the difference in the effective annual rates charged by these two bank.
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