You are considering taking out a two-year loan of $1,000 from a bank, on which you can

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You are considering taking out a two-year loan of $1,000 from a bank, on which you can pay either compound yearly interest of 1 percent or a flat rate of 2 percent for the whole two-year period. Which option is a better deal, and why?

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Microeconomics

ISBN: 978-1259163531

1st edition

Authors: Dean Karlan, Jonathan Morduch

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Question Posted: Sep 21, 2024 06:02 AM

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You are considering taking out a two-year loan of $1,000 from a bank, on which you can

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The flat rate of2 percent is the better deal If you pa...View the full answer

Microeconomics

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