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You have a choice of borrowing money from a finance company at 22 percent compounded monthly or borrowing money from a bank at 24 percent
You have a choice of borrowing money from a finance company at 22 percent compounded monthly or borrowing money from a bank at 24 percent compounded weekly. Which alternative is the most attractive? If you can borrow funds from a finance company at 22 compounded monthly, the EAR for the loan is what %. If you can borrow funds from a bank at 24% compounded weekly, the EAR for the loan is what %?
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