Question
Harry needs to borrow $ 33 million to finance his two-year MBA. Find two financing alternatives: option A: Ask for a loan that lends you
Harry needs to borrow $ 33 million to finance his two-year MBA. Find two financing alternatives: option A: Ask for a loan that lends you a compound annual rate of 12%, compounded semi-annually; Option B: get the money with another entity in the financial sector that lends you 13% annual cash. In both cases, interest begins to accrue from the beginning of the disbursement. Harry's plan is to start paying once he finishes his degree and gets a job. A. Construct the functions that model the two situations, describe the variables and their units in each case B. Determine the total value of the debt two years after applying for the loan for each of the two options and determine which of the two would be the best option for Harry C. Under the scenario that Harry finished his master's degree and did not get a job, by what approximate date, the value of the debt with option A would have doubled
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