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You would be making a wise decision if you chose to: invest in an account paying 6 percent, compounded quarterly, rather than an account paying 6 percent, compounded monthly. ignore the effective rates and concentrate on the annual percentage rates for all transactions. assume all loans and investments are based on simple interest. accept the loan with the lower effective annual rate rather than the loan with the lower annual percentage rate. base decisions regarding investments on effective rates and base decisions regarding loans on annual percentage rates.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91779118

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