First Choice Bank wants to earn an effective interest rate of 16.50% per year. In order to suit different potential borrowers needs, the bank offers fees options. The first calcubes interest in a weekly compounding bus, while the second calculates interest compounded monthly What interest rate is the bank required to report for the two options?

Give one reason why a borrower might proter an interest rate compounded monthly over one that is compounded weekly.

On a weekly compounding basis, the bank is required to report an interest rate of

On a monthly compounding basis, the bank is required to report an interest rate of 

Give one reason why a borrower might prefer an interest rate compounded monthly over one that is compounded weekly select the best answer D.

A. A borrower might prefer an interest rate compounded monthly due to its higher APR.

B. A borrower might prefer an interest rate compounded monthly a matches his/her liquidity needs or ting of the cash.

Answer rating: 100% (QA)

Answer We know st Effective Intrest rate r 11n 1 Where i Stan... View the full answer