Comparing loans of equal amounts and equal time periods

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Reference no: EM132033337

1. When comparing loans of equal amounts and equal time periods, you should select the loan that has the lowest:

nominal rate.

annual percentage rate.

stated rate.

quoted rate.

effective annual rate.

2. There are two mutually exclusive investments. Assume an interest rate of 5 percent. Choose the better of the two investments

Period 0 1 2

A -600 500 600

B -700 800 400

Reference no: EM132033337

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