Answer:
It is true, A rate of 10% with semiannual compounding should prefer.
Explanation:
The interest rate is the amount of charge a lender is used for assets. It is typically an annual basis or annual percentage,
The assets include
If a borrower is at high risk, they will be charged higher. It means the borrower will have to pay the original loan of the bank.
A leader prefers the compound interest method that the borrower pays.
A leader should prefer a semiannual (twice a year) rate.
The borrower prefers a loan with a rate of 10% annually.
