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The stated interest rate that a bank charges on its home loans is 8.00% and the effective annual interest rate has been computed as 8.33%.

The stated interest rate that a bank charges on its home loans is 8.00% and the effective annual interest rate has been computed as 8.33%. Based on this information, interest is most likely being compounded on a:

Quarterly basis.

Daily basis.

Semi-annual basis.

Monthly basis.

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