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question about finance need help to solve to clear the concept..... A Company Can barrow a discontel & 12,500 loan for 6 manths at 1.76%.
question about finance need help to solve to clear the concept.....
A Company Can barrow a discontel \& 12,500 loan for 6 manths at 1.76%. What is the effedive rote of Use a 360 -day year calender. RI=PrincipolInterestDaysloanisoutstandingDaysinJear(360) b): If the company securas the loan at the rate calculated in a, the borrowed money would that yielfs an effective 8% return, Covering the Same Period. Dotermare whether this proposition results in net jain (or loss) for the fixw. c):- Alternafively, the firm can choose not fito boorow and deposit its avaidble funds in a savings accomit that Pays an effective 2.50% rate with the same maturity as thot of The loan. compared to your assessment of the Proposition outlimed in b, is the firm better off with the savings accountStep by Step Solution
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