Question

What is the difference between APR on the following loans? (Difference = higher APR - lower...

What is the difference between APR on the following loans? (Difference = higher APR - lower APR)

Option 1

Borrow $70,000

Repay $80,000

Time 5 years

Annual compounding

Option 2

Borrow $75,000

Repay $85,000

Time 5 years

Quarterly compounding

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