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Problem 14 Intro Bank of America quotes a rate of 11.9% with monthly compounding for a consumer loan, while Wells Fargo quotes you 12% with

Problem 14

Intro

Bank of America quotes a rate of 11.9% with monthly compounding for a consumer loan, while Wells Fargo quotes you 12% with annual compounding.

Part 1

What is the EAR for Bank of America?

Part 2

What is the EAR for Wells Fargo?

Part 3

As a borrower, which loan should you take?

The loan from Wells Fargo

The loan from Bank of America

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