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Suppose you are considering taking a loan from one of two financial companies. Financial Company X charges you an interest rate of 13.5% with monthly

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Suppose you are considering taking a loan from one of two financial companies. Financial Company X charges you an interest rate of 13.5% with monthly compounding. Financial Company Y charges you an effective annual rate (EAR) of 14% with semi-annual compounding. Which company should you borrow your loan from and why? Show your calculations. H

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