For a multi year loan, Citi quotes you a rate of 12%, while Wells Fargo quotes you

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For a multi year loan, Citi quotes you a rate of 12%, while Wells Fargo quotes you 11.9%.

Which statement is most likely INCORRECT?

Wells Fargo is a worse offer if compounded at high frequency.

When comparing both investment and loan options, EAR, rather than the APR, should be used.

Wells Fargo is a better offer because of the lower rate.

When comparing loans, you should select the one with the lowest EAR.

Related Book For answer-question

Ethical Obligations And Decision Making In Accounting Text And Cases

ISBN: 9781264135943

6th Edition

Authors: Steven Mintz

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Posted Date: Oct 19, 2023 07:50 AM

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For a multi year loan, Citi quotes you a rate of 12%, while Wells Fargo quotes you

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