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A firm is negotiating with a bank for a 1 year loan of $50,000. The bank has offered the firm the following alternatives. Calculate the
A firm is negotiating with a bank for a 1 year loan of $50,000. The bank has offered the firm the following alternatives. Calculate the effective annual interest rate for each alternative. Which alternative has the lowest effective annual rate?
d) Interest is figured as 8% of the $50,000 amount, payable at the end of the year, but the $50,000 is repayable in monthly installments during the year.
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