Which of the following statements related to interest rates are INCORRECT? When comparing loans, you should compare the annual percentage rate. Annual and effective interest rates are equal when interest is compounded daily. Effective annual rates consider the effect of interest earned on reinvested interest payments. Lenders are required by law to disclose the effective annual rate of a loan to prospective borrowers. II and IV only I and II only I, II, and IV only II and III only II, III, and IV only