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You are a financial manager at Troy Pty Ltd and evaluating two loans. Standard Bank quotes a nominal annual rate of 11.35% compounded daily.

You are a financial manager at Troy Pty Ltd and evaluating two loans. Standard Bank quotes a nominal annual rate of 11.35% compounded daily. Capitec Bank quotes a nominal annual rate of 12% compounded semi-annually. Required; Which of the two loans should you select to obtain a favorable effective interest rate before-tax cost?

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