Question: complete all parts Question Help o Consider two loans with a 1year maturity and identical face values an) 7.9% loan with a 100% loan origination

complete all parts

Question Help o Consider two loans with a 1year maturity and identical face values an) 7.9% loan with a 100% loan origination fee and ain) 7.9% loan with a 4.9% (no-Interest) compensating balance requirement. Which loan would have the higher effective annuale (EARJ? Why? The EAR in the first cases % Hound to one decimal place) Enter your awwer in the answer box and then click Check Anwar 2 ur Odor A Gheck new P27-7 (similar to) Question Hold Consider two loans with a 1-year maturity and identical face values: ain) 79% loan with a 1,03% loan ongination fee and ain) 7 9% loan with a 4.9% (no interest) compensating balancereurement which would have the higher effective annual rate (EARY? Why? The EAR in the first case is (Round to one decimal place)

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