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I need the answer in percentage please. Company A is currently cash-constrained, and must make a decision about whether to delay paying one of its
I need the answer in percentage please.
Company A is currently cash-constrained, and must make a decision about whether to delay paying one of its suppliers, or taking out a loan. They owe the supplier $20,670, and they can borrow the money from Bank B, which has offered to lend the firm $20,670 for 1 months at an APR of 15% (compounded). The loan has a 1.84% loan origination fee.
What would be the cost for Company A if they decide to borrow from Bank B?
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