Question: You are looking at three borrowing options. Option A charges 5%, with daily compounding. Option B charges 5.1% with semiannual compounding. Option three has an

You are looking at three borrowing options. Option A charges 5%, with daily compounding. Option B charges 5.1% with semiannual compounding. Option three has an effective annual rate of 5.15%. Which one would you choose? Why?

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