You are considering two loans. The terms of the two loans are equivalent with the exception...

You are considering two loans. The terms of the two loans are equivalent with the exception of the interest rates. Loan A offers a rate of 13.2 percent compounded monthly. Loan B offers a rate of 13.5 percent compounded semi-annually. Loan _____ is the better offer because______.

A; the annual percentage rate is 13.2 percent and you will pay less interest.

B; the effective interest rate is 13.96% and you will pay less interest.

A; the interest is compounded more frequently.

A; the effective interest rate is 14.03% and you will pay less interest

B; the interest is compounded less frequently.

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You are considering two loans. The terms of the two loans are equivalent with the exception...

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