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