Suppose you can borrow money at 10 20 per year (APR) compounded semiannually or 8 88 per year (APR) compounded monthly a Calculate the effective annual rates (Do not round intermediate calculations Enter your answers as a percent rounded to 2 decimal places ) Effective Annual Rates 10 20 8 88 b Which is the better deal 10 20 per year (APR) compounded semiannually 8 88 per year (APR) compounded monthly

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Suppose you can borrow money at 10.20% per year (APR) compounded semiannually or 8.88% per year (APR) compounded monthly. a. Calculate the effective annual rates.

Suppose you can borrow money at 10.20% per year (APR) compounded semiannually or 8.88% per year (APR) compounded monthly.

a.	Calculate the effective annual rates. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

	Effective Annual Rates
10.20%	%
8.88%	%

Which is the better deal?

	10.20% per year (APR) compounded semiannually.
	8.88% per year (APR) compounded monthly.

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