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Suppose you can borrow money at 8.6% per year (APR) compounded semiannually or 8.4% per year (APR) compounded monthly. a. Calculate the effective annual rates.

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Suppose you can borrow money at 8.6% per year (APR) compounded semiannually or 8.4% 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 9.40 8.64 b. Which is the better deal? 9.40% per year (APR) compounded semiannually. 8.64% per year (APR) compounded monthly

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