Question: For a loan, you have two options. Option A: The loan earns 3.9% interest, compounded monthly. Option B: The loan earns 4.2% interest, compounded semi-annually.

For a loan, you have two options. Option A: The loan earns 3.9% interest, compounded monthly. Option B: The loan earns 4.2% interest, compounded semi-annually. Find the effective rate for option A, as a percentage rounded to three decimals. Find the effective rate for option B, as a percentage rounded to three decimals. Which option is better? Option A or Option B

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