You are considering two loans the terms of the two loans, Financial Management

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You are considering two loans the terms of the two loans

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 7.75 percent, compounded daily. Loan B offers a rate of 8 percent, compounded semi-annually. Which loan should you select and why?

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Financial Management: You are considering two loans the terms of the two loans

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Financial Management: You are considering two loans the terms of the two loans

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