Question: Let's say you can borrow at 10.20% per year compounded semi-annually (APR) or 8.88% per year (APR) compounded monthly. A. Calculate effective annual rates. (Do

Let's say you can borrow at 10.20% per year compounded semi-annually (APR) or 8.88% per year (APR) compounded monthly.

A.Calculate effective annual rates. (Do not round up intermediate calculations. Enter your answers as a percentage, rounded to 2 decimal places.)

Current Annual Rates
%10.20%
%8,88%


B.

Which is the better deal?

10.20% per year (APR) compounded every six months.
Monthly compounded annualized 8.88% (APR).

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