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(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

(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 12 percent compounded semiannually or from a bank at 13 percent compounded annually. Which alternative is more attractive? If you can borrow funds from a finance company at 12 percent compounded semiannually, the EAR for the loan is %. (Round to two decimal places.)

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