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You want to borrow money from a bank. Bank A's loan offers a nominal interest rate of 8% compounded daily. Bank B's loan offers you

You want to borrow money from a bank. Bank A's loan offers a nominal interest rate of 8% compounded daily. Bank B's loan offers you a nominal annual rate of 8.15%, compounded quarterly. You want to borrow money for a year and assume 365 days per year.


What is the effective annual interest rate of a better loan deal?

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