Explain how to compare the effective annual rates

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First National Bank charges 13.6 percent compounded monthly on its business loans. First United Bank charges 13.7 percent compounded semiannually. As a potential borrower, you decide to compare their effective annual rates. First National Bank's business loans have an EAR of percent, whereas First United Bank's loans have an EAR of percent.

Reference no: EM13328865

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