Question: You visit your local bank and inquire about the rates on two-year personal loans.Below are details for three loans: 5.40% per annum repaid annually. The

You visit your local bank and inquire about the rates on two-year personal loans.Below are details for three loans:

  1. 5.40% per annum repaid annually. The EAR of this deposit is
  2. 5.30%per annum repaid quarterly.The EAR of this deposit is
  3. 5.25%per annum repaid fortnightly.The EAR of this deposit is

You should choose

Loan 2

Loan 1

Loan 3

because it has the

lowest or

highest

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