Question: if two loans have the same nominal rate but different compounding frequencies, then: a. the effective rate will have a compounding frequency equal to the

if two loans have the same nominal rate but different compounding frequencies, then:

a.

the effective rate will have a compounding frequency equal to the frequency of the nominal rate.
b.

the loan which charges interest more frequently must have the higher effective rate.
c.

the loans will have the same effective annual rates.
d.

the effective rate will be lower than the nominal rate for both loans.
e.

the loan with more frequent compounding will have a lower effective rate.

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