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You approach two different banks for a loan of $100,000 to finance the purchase of this equipment. Farm Credit charges 12% APR compounded monthly. CoBank

You approach two different banks for a loan of $100,000 to finance the purchase of this equipment. Farm Credit charges 12% APR compounded monthly. CoBank charges 11.95% APR compounded daily. Which bank should you use for the loan? Justify your choice mathematically and briefly explain.

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