Most likely increase the effective annual rate of loan

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1. Which of the following will most likely increase the effective annual rate (EAR) of a loan?

a. Changing from weekly compounding to daily compounding

b. Decreasing the frequency of the interest compounding

c. Applying only simple interest

d. Decreasing the annual percentage rate

2. Which of the following are positively related to future value?

a. present value of the cash flow

b. interest rate

c. number of periods

d. all of the above

Reference no: EM131992670

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