Please assist with the following problem.
Last National Bank is offering you a loan at 10%; payments on the loan are to be made monthly. Credit Union is offering you a loan where payments are to be made semi-annually; the rate on the loan is also 10%. Local Bank down the street is also offering a loan at 10% where the payments are made quarterly. Which loan has the lowest effective annual rate?
- Last National Bank's loan
- Local Bank's loan
- Credit Union's loan
- All of the loans will have the same effective annual rate.