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(Related to Checkpoint 5.7) (Calculating an EAR) You have a choice of borrowing money from a finance company at 21 percent compounded weekly or borrowing
(Related to Checkpoint 5.7) (Calculating an EAR) You have a choice of borrowing money from a finance company at 21 percent compounded weekly or borrowing money from a bank at 23 percent compounded quarterly. Which alternative is the most attractive? If you can borrow funds from a finance company at 21 percent compounded weekly, the EAR for the loan is 96. (Round to two decimal places.) If you can borrow funds from a bank at 23 percent compounded quarterly, 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.) A. The loan from the finance company at 21% compounded weekly O B. The loan from the bank at 23% compounded quarterly
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