First national bank charges 137 percent compounded monthly, Financial Econometrics

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First national bank charges 137 percent compounded monthly

First National Bank charges 13.7 percent compounded monthly on its business loans. First United Bank charges 14.0 percent compounded semiannually.

Calculate the EAR for First National Bank and First United Bank.

As a potential borrower, which bank would you go to for a new loan?

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Financial Econometrics: First national bank charges 137 percent compounded monthly

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Financial Econometrics: First national bank charges 137 percent compounded monthly

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