Accept the loan with the lower effective annual rate

Assignment Help Financial Management

Reference no: EM131338776

You would be making a wise decision if you chose to:

A) Base decisions regarding investments on effective rates and base decisions regarding loans on annual percentage rates.

B) Ignore the effective rates and concentrate on the annual percentage rates for all transactions

C) Accept the loan with the lower effective annual rate rather than the loan with the lower annual percentage rate

D) Invest in an account paying 6 percent, compounded quarterly, rather than an account paying 6 percent, compounded monthly.

E) Assume all loans and investments are based on simple interest.

Reference no: EM131338776

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