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(Related to Checkpoint 5.7) (Calculating an EAR) You have a choice of borrowing money from a finance company at 23 percent compounded monthly or borrowing
(Related to Checkpoint 5.7) (Calculating an EAR) You have a choice of borrowing money from a finance company at 23 percent compounded monthly or borrowing money from a bank at 25 percent compounded weekly. Which alternative is the most attractive? If you can borrow funds from a finance company at 23 percent compounded monthly, the EAR for the loan is %. (Round to two decimal places.) If you can borrow funds from a bank at 25 percent compounded weekly, the EAR for the loan is %. (Round to two decimal places.) Based on the findings above, which alternative is more attractive? (Select the best choice below.) O A. The loan from the finance company at 23% compounded monthly O B. The loan from the bank at 25% compounded weekly
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