You need to borrow some money to finance your business operations and a financial company, No Mercy Inc. (NM), offers you with a published interest rate of 7% APR compounded quarterly. You visited another company, Pure Greedy Inc. (PG) and you were offered an interest rate with semi-annual compounding.

What would be the APR semi-annual compounding rate PG would charge so that the rate can be equally competitive, whether you borrow from NM or PG.

You heard that another company, Debt Daddy Inc. (DD) offers you an interest rate with monthly compounding. Among all 3 companies, would you rather choose only PG as interest is compounded just 2 times a year? Please explain.

You only want to give business to DD. How would you negotiate with DD?