Question
( Compound interest with nonannual periods ) After examining the various personal loan rates available to you, you find that you can borrow funds from
(Compound interest with nonannual periods) 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 9 percent compounded quarterly or from a bank at an APR of 10 percent compounded weekly. Which alternative is more attractive?
a. If you borrow $100 from a finance company at an APR of 99 percent compounded quarterly for 1 year, how much do you need to payoff the loan?
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The Analysis And Use Of Financial Statements
Authors: Gerald I. White, Ashwinpaul C. Sondhi, Haim D. Fried
3rd Edition
0471375942, 978-0471375944
