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( Related to Checkpoint 5 . 7 ) ( Calculating an EAR ) After examining the various personal loan rates available to you, you find

(Related to Checkpoint 5.7)(Calculating an EAR) After examining the various personal loan rates available to you, you find that you can borrow funds from a finance company at 13 percent compounded weekly or from a bank at 14 percent compounded annually. Which alternative is more attractive?
If you can borrow funds from a finance company at 13 percent compounded weekly, the EAR for the loan is %.(Round to two decimal places.)
If you can borrow funds from a bank at 14 percent compounded annually, the EAR for the loan is %.(Round to two decimal places.)
Based on the findings above, which alternative is more attractive? (Select the best choice below.)
A. The loan from the finance company at 13% compounded weekly
B. The loan from the bank at 14% compounded annually
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