Question: 7 You are choosing between two different loans with identical terms, except the interest rates are different. Loan A has a rate of eight percent

7 7 You are choosing between two different loans with identical terms, except

You are choosing between two different loans with identical terms, except the interest rates are different. Loan A has a rate of eight percent compounded monthly, while loan B has a rate of 7.9% compounded daily. Loan is better because A; the interest is compounded less frequently. B A; the effective annual rate is 8%. B; the effective annual rate is 7.9%. B; you will pay less interest

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