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Mathematics, 30.12.2021 01:00 sanchez9211

Dave is considering two loans. Loan U has a nominal interest rate of 9. 97%, and Loan V has a nominal interest rate of 10. 16%. If Loan U is compounded daily and Loan V is compounded quarterly, which loan will have the lower effective interest rate, and how much lower will it be? a. Loan Vâ€™s effective rate will be 0. 3324 percentage points lower than Loan Uâ€™s. B. Loan Vâ€™s effective rate will be 0. 1187 percentage points lower than Loan Uâ€™s. C. Loan Uâ€™s effective rate will be 0. 5124 percentage points lower than Loan Vâ€™s. D. Loan Uâ€™s effective rate will be 0. 0713 percentage points lower than Loan Vâ€™s.

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Dave is considering two loans. Loan U has a nominal interest rate of 9. 97%, and Loan V has a nomina...

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