Asked by miguel angel martinez porras on Jun 02, 2024
Verified
Lisa is offered a loan from a bank at 4.2% compounded monthly. A credit union offers similar terms but a rate of 4.4% compounded semiannually. Which loan should she accept? Present calculations that support your answer.
Compounded Semiannually
The process where interest is calculated and added to the principal sum of a loan or deposit twice a year, leading to interest on interest.
- Compare and identify the preferable interest rates for loans and investments based on their compounding terms.
Verified Answer
ZK
Learning Objectives
- Compare and identify the preferable interest rates for loans and investments based on their compounding terms.