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plzz answer all parts ABC & XYZ Manufacturing is expanding its facilities and reguves a bank loan of $4,000,000 for one yearThe banker has offered
plzz answer all parts
ABC & XYZ Manufacturing is expanding its facilities and reguves a bank loan of \$4,000,000 for one yearThe banker has offered a stated rate of 9% interest and has offered the company four different options andmanagement must decide what would be most suitable .
TASK Compare each alternative by calculating the annual rate of interest for each
Option #1 A simple 9% interest with a 10% compensating balance
Option #2 Discounted interest Option #3. 12-installment loan Option #4 Discounted interest with a 2% administration fee QUESTION What option should management pick?
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