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You wish to borrow $10,000 for 5 years. Bank A charges 5 percent per year compounded annually. Bank B charges 4.80 percent compounded monthly. Bank

You wish to borrow $10,000 for 5 years. Bank A charges 5 percent per year compounded annually. Bank B charges 4.80 percent compounded monthly. Bank C charges 4.60 percent compounded daily. Which bank would you prefer to borrow from if you wish to pay the lowest effective annual rate on the loan?

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