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Which of the following one-year $1,000 bank loans offers the lowest effective annual rate? a. A loan with an APR of 6.3%, compounded monthly. b.
Which of the following one-year $1,000 bank loans offers the lowest effective annual rate? a. A loan with an APR of 6.3%, compounded monthly. b. A loan with an APR of 6.3%, compounded annually, that also has a compensating balance requirement of 9.6% (on which no interest is paid). c. A loan with an APR of 6.3%, compounded annually, that has a 1.4% loan origination fee. a. A loan with an APR of 6.3%, compounded monthly. (Select from the drop-down menus.) Since the APR is 6.3%, the monthly rate is This translates to an effective annual rate of
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