The loan with the greater increase in effective rate is the loan (I). It is greater by 0.19%.
The effective rate is also called the actual rate paid on a loan. It takes into account the effect of compounding.
Formula:
[tex]\text{i}=(1+\dfrac{r}{m})^m-1[/tex]
Where, r = Nominal Rate,
m= number of compounding.
Computation of Effective interest rate:
The effective rate of interest of loan (H) is:
[tex]\text{i}=(1+\dfrac{r}{m})^m-1\\\\\text{i}=(1+0.0568365)^3^6^5-1\\\\\text{i}=0.058439\\\\I=0.058439\times{100}\\I=5.8439\%[/tex]
The effective rate of interest of loan (I) is:
[tex]\text{i}=(1+\dfrac{r}{m})^m-1\\\\\text{i}=(1+0.063312)^1^2-1\\\\\text{i}=0.065169\\\\I=0.065169\times{100}\\I=6.5169%[/tex]
The differences between the effective rate and the nominal rates of the loans:
Loan H = 5.84%—5.68% = 0.16%
Loan I = 6.52%—6.33% = 0.19%
Therefore, the difference of interest of loan (I) is more than the loan (H) by 0.19%.
To learn more about the effective rate, refer to:
https://brainly.com/question/15846526?referrer=searchResult
