Say you are considering two loans. Loan F has a nominal interest rate of 5.66%, compounded monthly. Loan G has a rate of 6.02%, compounded semiannually. Which loan will give the lower effective interest rate, and how much lower will it be

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Say you are considering two loans. Loan F has a nominal interest rate of 5.66%, compounded monthly. Loan G has a rate of 6.02%, compounded semiannually. Which loan will give the lower effective interest rate, and how much lower will it be

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“Effective loan rate g 0.091 percentage points lower than loan rate f” one of the following options given in the question showing which loan will give the lower effective interest rate, and how much lower . The correct choice among all the options given in the question is the first option or the “a” option.