Question
AMI plans to borrow IDR 1M for 4 years from the bank. Camel Bank is willing to provide loans with an interest rate of 21%
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AMI plans to borrow IDR 1M for 4 years from the bank. Camel Bank is willing to provide loans with an interest rate of 21% p.a. in installments every 6 months. Bank Simpson is willing to provide loans with a simple interest rate of 18% p.a. Compounded every 6 months, but on condition that the company deposit the repayment funds to the bank with an interest of 12% p.a. calculated every 6 months.
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Which alternative is the best choice?
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How much efficiency can be made each semester?
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Valuation Workbook Step By Step Exercises And Tests To Help You Master Valuation
Authors: McKinsey & Company Inc.
7th Edition
1119611814, 978-1119611813
