Question: You are choosing between two different loans with identical terms, except the interest rates are different. Loan A has a rate of 5.9% compounded weekly,

You are choosing between two different loans with identical terms, except the interest rates are different. Loan A has a rate of 5.9% compounded weekly, while Loan B has a rate of 6% compounded monthly. Loan _____ is better because _____.

Points: 1

A; the effective annual rate is 6.07%.
A; the interest is compounded less frequently.
B; the annual percentage rate is lower.
B; the effective annual rate is 6.07%.

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