Question
After examining the various personal loan rates available to you, you find that you can borrow funds from a finance company at an APR of
After examining the various personal loan rates available to you, you find that you can borrow funds from a finance company at an APR of 7 percent compounded weekly or from a bank at an APR of 8 percent compounded annually. Which alternative is more attractive?
1. If you borrow $100 from a finance company at an APR of 7 percent compounded weekly for 1 year, how much do you need to payoff the loan? (round to nearest cent)
2. If you borrow $100 from a bank at an APR of 8 percent compounded annually for 1 year, how much do you need to payoff the loan? (round to the nearest cent)
3. Based on the findings in parts a and b, which alternative is more attractive? (Select the best choice below.)
a. The loan from the bank at an APR of 8% compounded annually.
b. The loan from the finance company at an APR of 7% compounded weekly.
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Fighting Fraud And Corruption At The World Bank A Critical Analysis Of The Sanctions System
Authors: Stefano Manacorda , Costantino Grasso
1st Edition
3319738232,3319738240
