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You are considering between two loans. Assume everything between these two loans is the same except for the interest rate. Loan A offers 5.5% compounded
You are considering between two loans. Assume everything between these two loans is the same except for the interest rate. Loan A offers 5.5% compounded weekly. Loan B offers 5.64% compounded semiannually. Which loan is better and why? Loan A because the actual rate is 5.65% is lower than Loan B's actual rate. Loan A because 5.5% is lower than Loan B's 5.64%. Loan B because the actual rate is 5.72% is higher than Loan A's actual rate. Loan B because 5.64% is higher than Loan A's 5.5%. None of the above
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