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Which of the followingone-year$1,000bank loans offers the lowest effective annualrate? a. A loan with an APR of6.0%,compounded monthly. b. A loan with an APR of
Which of the followingone-year$1,000bank loans offers the lowest effective annualrate?
a. A loan with an APR of6.0%,compounded monthly.
b. A loan with an APR of 6.0%,compoundedannually, with a compensating balance requirement of 10.0%(on which no interest ispaid).
c. A loan with an APR of 6.0%,compoundedannually, with a 1.00%loan origination fee.
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