(Compound interest with nonannual periods ) After examining the various personal loan rates available to you, you find that you can borrow funds from a finance company at 11 percent compounded quarterly or from a bank at 12 percent compounded daily. Which alternative is more attractive?
a. If you borrow $100 from a finance company at 11 percent compounded quarterly for 1 year, how much do you need to payoff the loan
b. If you borrow $100 from a finance company at 12 percent compounded daily for 1 year, how much do you need to payoff the loan.