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Suppose you can borrow money at 14.94% per year (APR) compounded semiannually or 13.27% per year (APR) compounded monthly. a. Calculate the Effective Annual Rate.

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Suppose you can borrow money at 14.94% per year (APR) compounded semiannually or 13.27% per year (APR) compounded monthly. a. Calculate the Effective Annual Rate. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 14.94% 13.27% Effective Annual Rate % % b. Which is the better deal? APR compounded semiannually. APR compounded monthly

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