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Question 10: You own Howl Coffee Inc., and just decided to open up a new store in Riverside, CA. This will cost around $200,000 and

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Question 10: You own Howl Coffee Inc., and just decided to open up a new store in Riverside, CA. This will cost around $200,000 and you have $0 in your business account! However, three banks you have visited are willing to give you the $200,000 loan to fund the Riverside store. CSUSB Bank is offering you a $200,000 loan at 10.5% simple interest. Bank of Riverside has offered you a $200,000 loan at 10.0% compounded daily (assume 365 days in a year). Finally, Bank of Redlands has offered you an 9.89% loan compounded continuously. What is the EAR of the most expensive (highest effective interest) loan? ENTER ANSWER BELOW AS A NUMBER ROUNDED TO TWO DECIMALS (DECIMAL FORM OR PERCENTAGE FORMAT IS FINE) Question 11: What is the EAR of the least expensive (lowest effective interest) loan from Question 10 above? ENTER ANSWER BELOW AS A NUMBER ROUNDED TO TWO DECIMALS (DECIMAL FORM OR PERCENTAGE FORMAT IS FINE) Question 12: From which bank in Question 10 above should you borrow the $200,000 if you wish to pay as little interest as possible? CSUSB Bank b) Bank of Riverside c) Bank of Redlands

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