Epxlain why the two techniques result in different results

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Reference no: EM13472150

Explain which of the two options below results in a lower balance after 6 months on a debt of $2500.

Annual simple interest of 12% applied at the end of the 6 months.
A monthly interest rate of 1% applied at the end of each month and before the start of the next month.

Discuss why the two methods result in different results.

In what circumstances might you select one option over another?

Reference no: EM13472150

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