t A B C D E F G H J K P5-36 Modified (also include a choice of borrowing at 25% compounded semiannually) You have a choice of borrowing money from a finance company at 24% compounded monthly or borrowing from a bank at 26% compounded annually. Also, include a choice of borrowing at 25% compounded semiannually. Which alternative is more attractive? Hint: to solve for EAR you can use either equation 5-4 on page 146 or the Excel EFFECT formula. li m EAR m EAR i m 5 5 7 EAR DE OOM DE 26M D5-37