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Difference in the effective annual rates

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ABC Bank offers to lend you $28,000 at an annual nominal rate of 12.0%, with interest paid monthly. XYZ Bank offers to lend you the 28,00, but it will charge an annual nominal rate of 11.0%, compounded daily (based on 365 days per year). What's the difference in the effective annual rates charged by the ABC & XYZ banks?

Reference no: EM131856337

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