Which one of the following statements is correct? The APR is equal to the EAR for a loan that charges interest monthly The APR on a monthly loan is equal to (1 +monthly interest rate)12 - 1. The EAR is always greater than the APR. The APR is the best measure of the actual rate you are paying on a loan. The EAR, rather than the APR, should be used to compare both investment and loan options. Witch bank is offering a term deposit that offers 12% per annum interest, compounding monthly. Dragon Bank is offering 12.3% per annum, compounding quarterly. Which of the following statements is true? It is better to invest in Dragon bank because the interest rate is higher It makes no difference as the interest earned will be the same over a year. It is better to invest in Witch bank because the compounding periods are shorter. It is better to invest in Dragon bank as the EAR is higher than Witch bank. It is better to invest in Witch bank as the EAR is higher than Dragon bank. Convert 7.51% compounding monthly to an Effective Annual Rate (EAR) correct to TWO decimal places Ignore the % sign in your answer)