Calculate the effective annual rates for each loan

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Reference no: EM131959383

Jasmine Scents has been given two competing offers for short-term financing. Both offers are for borrowing $15,000 for 1 year.

The first offer is a discount loan at 8 %, and the second offer is for interest to be paid at maturity at a stated interest rate of 9%.

Calculate the effective annual rates for each loan, and indicate which loan offers the better terms.

Reference no: EM131959383

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