Business, 17.11.2020 16:30 nidiavega2009

First Choice Bank wants to earn an effective interest rate of 18% per year. In order to suit different potential borrowers' needs, the bank offers two options. The first calculates interest on a weekly compounding basis while the second calculates interest on a monthly compounding basis. What interest rate is the bank required to report for the two options? Give one reason why a borrower might prefer monthly compounding over weekly compounding.

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First Choice Bank wants to earn an effective interest rate of 18% per year. In order to suit differe...

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