You are choosing between two different loans with identical terms, except the interest rates are different. Loan A has a rate of 6.40% compounded semi-annually, while loan B has a rate of 6.35 percent compounded daily. Loan is better because B; you will pay less interest. B; the annual percentage rate is 6.35%. A; the annual percentage rate is 6.50%. A; the effective annual rate is 6.50%. A; the interest is compounded less frequently