Question
Maria is considering an offer of a $ 5 million working capital loan from Bank A at an interest rate of 1.5% per month calculated
Maria is considering an offer of a $ 5 million working capital loan from "Bank A" at an interest rate of 1.5% per month calculated as daily interest or from "Bank B" with an interest rate of 17% per annum calculated as monthly interest. Which loan is more mitigating? Give a calculation and explanation (hint: EAR)
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Accounting for Decision Making and Control
Authors: Jerold Zimmerman
8th edition
978-0078025747
