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Bank A offers you a 10 year loan with an annual rate of interest of 6% with continuous compounding. Bank B offers you a 10
Bank A offers you a 10 year loan with an annual rate of interest of 6% with continuous compounding. Bank B offers you a 10 year loan with an annual rate of interest of 6% with compounding 4 times per annum. Bank C offers you a 10 year loan with an annual rate of interest of 6% with compounding 12 times per annum. Which of the following is correct? You would choose to borrow from Bank A. You would choose to borrow from Bank B. You would choose to borrow from Bank C. You are indifferent between borrowing from Bank A or Bank B
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