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Consider two loans with a 1-year maturity and identical face values: an 8% loan with a 1% loan 1 answer below » Consider two loans with a 1-year maturity and identical face values: an 8% loan with a 1% loan origination fee and an 8% loan with a 5% (no-interest) compensating balance requirement. Which loan would have the higher effective annual rate? Why? What is the difference between evergreen credit and a revolving line of credit? Which of the following one-year $1000 bank loans offers the lowest effective annual rate? A loan with an APR of 6%, compounded monthly A loan with an APR of 6%, View complete question » Consider two loans with a 1-year maturity and identical face values: an 8% loan with a 1% loan origination fee and an 8% loan with a 5% (no-interest) compensating balance requirement. Which loan would have the higher effective annual rate? Why? What is the difference between evergreen credit and a revolving line of credit? Which of the following one-year $1000 bank loans offers the lowest effective annual rate? A loan with an APR of 6%, compounded monthly A loan with an APR of 6%, compounded annually, that also has a compensating balance requirement of 10% (on which no interest is paid) A loan with an APR of 6%, compounded annually, that has a 1% loan origination fee View less » Sep 17 2015 01:58 PM
