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You have a choice of borrowing money from a finance company at 19 percent compounded daily or borrowing money from a bank at 21 percent

You have a choice of borrowing money from a finance company at 19 percent compounded daily or borrowing money from a bank at 21 percent compounded annually. Which alternative is the most attractive?

a. If you can borrow funds from a finance company at 19 percent compounded daily, the EAR for the loan is

b. If you can borrow funds from a bank at 21 percent compounded annually, the EAR for the loan is

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