You are considering two loans.The terms of the two loans are equivalent with the exception of the interest rates.Loan A offers a rate of 7.45% compounded daily.Loan B offers a rate of 7.5% compounded semi-annually.Loan _____ is the better offer because______.
A) A; you will pay less interest
B) A; the annual percentage rate is 7.45%
C) B; the stated rate is 7.64%
D) B; the interest is compounded less frequently
E) B; the annual percentage rate is 7.64%
Correct Answer:
Verified
Q36: You are going to loan your friend
Q86: You just paid $350,000 for a policy
Q87: The Eternal Gift Insurance Company is offering
Q92: Mr.Miser loans money at an annual rate
Q94: The preference shares of ABC plc offers
Q95: Your credit card company charges you 1.5%
Q96: A 9% preference share pays an annual
Q97: You would like to establish a trust
Q154: Your rich uncle establishes a trust in
Q311: You have $2,500 that you want to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents