What nominal interest rate ann under either option

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Reference no: EM131878262

Kathy can take out a loan of 50,000 with Bank A or Bank B. With Bank A, she must repay the loan with 60 monthly payments using the annortization method with interest at 7% compounded monthly. With Bank B, she can repay the loan with 60 monthly payments using the sinking fund method. The sinking fund will earn 6.5% compounded monthly. What nominal interest rate ann under either option?

Reference no: EM131878262

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